These documents have been translated from Japanese originals for reference purposes only.
In the event of any discrepancy between these translated documents and the Japanese originals, the originals
shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any otherforms of damages arising from the translations.

(Securities Code 9301)
June 7, 2021
To Shareholders with Voting Rights:
Masao Fujikura
President
Mitsubishi Logistics Corporation
19-1, Nihonbashi, 1-chome, Chuoku, Tokyo, JapanNOTICE OF
THE 218TH ANNUAL GENERAL MEETING OF SHAREHOLDERS
Dear Shareholders:
We would like to express our appreciation for your continued support and patronage.
We hereby notify you of the 218th Annual General Meeting of Shareholders of Mitsubishi Logistics
Corporation (the “Company”). The meeting will be held for the purposes as described below.
From the viewpoint of preventing the spread of the novel coronavirus (COVID-19), we recommend you
refrain from attending the meeting and exercise your voting rights in writing by submitting the Voting Rights
Exercise Form, or via the Internet, etc. Please review the Reference Documents for the General Meeting of
Shareholders (pages 4 through 10), and return your form no later than 5 p.m. Japan time on Monday, June 28,
2021, or cast your vote via the Internet, etc., by 5 p.m. Japan time on Monday, June 28, 2021.
(Please refer to the page 3 for the detailed procedures for exercising voting rights via the Internet, etc.)
1. Date and Time:

Tuesday, June 29, 2021 at 10 a.m. Japan time

2. Place:

Nihonbashi Dia Building, Headquarters of the Company
19-1, Nihonbashi, 1-chome, Chuo-ku, Tokyo, Japan

3. Meeting Agenda:
Matters to be reported: 1. The Business Report, Consolidated Financial Statements for the Company’s
218th Fiscal Year (April 1, 2020 - March 31, 2021) and results of audits by
the Accounting Auditor and the Board of Corporate Auditors of theConsolidated Financial Statements
2. Non-consolidated Financial Statements for the Company’s 218th Fiscal Year
(April 1, 2020 - March 31, 2021)
Proposals to be resolved:
Proposal No. 1: Appropriation of Surplus
Proposal No. 2: Election of Thirteen (13) Directors
Proposal No. 3: Payment of Bonuses to Directors

1

4. Information on Exercise of Voting Rights(1) If you vote both in writing on the Voting Rights Exercise Form and via the Internet, only your vote placed
via the Internet will be valid.
In addition, if you submit your vote multiple times via the Internet, only the last vote will be valid.
(2) If you are unable to attend the meeting, you can exercise your voting rights by proxy by appointing anothershareholder with voting rights as proxy and submitting a document that attests the power of proxy.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
When attending the meeting, please submit the enclosed Voting Rights Exercise Form at the reception desk.
Any updates to the Reference Materials for the General Meeting of Shareholders, the Business Report, theConsolidated Financial Statements and Non-consolidated Financial Statements will be posted on the “Investor
Relations” on the Company’s website (https://www.mitsubishi-logistics.co.jp/english/ir/index.html).

2

Instructions for Voting via the Internet
If you exercise your voting rights via the Internet, please view “4. Information on Exercise of Voting Rights” onpage 2 and the following matters before you exercise your rights by 5 p.m. (Japan time) on Monday, June 28,
2021.
How to scan the QR CodeYou can exercise your voting rights without entering the “Login ID” or “temporary password.”
1. Scan the QR Code printed on the tab of the Voting Rights Exercise Form (on the right).
* QR Code is a registered trademark of DENSO WAVE INCORPORATED.
2. Please vote for or against each proposal following the on-screen guidance.
Exercise of voting rights using the QR code is possible only once. From the second time onward, it will benecessary to input the “Login ID” and “Temporary password.”
How to enter the “Login ID” and “Temporary password”
Voting rights exercise website: https://evote.tr.mufg.jp/
1. Access the voting rights exercise website.
2. Enter the “Login ID” and “Temporary password” printed on the Voting Rights Exercise Form and click “Login.”
3. Register a new password.
4. Please vote for or against each proposal following the on-screen guidance.
To prevent unauthorized access by non-shareholders (so-called “spoofing”) and falsification of the content of
the exercise of voting rights, the Company requests a change in the “Temporary password” via the voting rights
exercise website.
About the voting rights exercise website(1) The website will be inactive between 2 a.m. and 5 a.m. each day.
(2) It may not be possible to use the website depending upon the Internet environment, the Internet service, or
the model of device that you are using.
(3) Please note that the shareholder is solely responsible for any expenses (Internet connection fees, etc.)
incurred while accessing the voting rights exercise website.
(4) If you have any questions, please contact the following:

Stock Transfer Agency Department (Help Desk), Mitsubishi UFJ Trust and Banking Corporation
Telephone: 0120-173-027 (Toll-free)Business Hours: 9 a.m. – 9 p.m. (Japan time)< For institutional investors>
Institutional investors may exercise your voting right using the voting platform operated by ICJ, Inc.

3

Reference Documents for the General Meeting of Shareholders
Proposals and References
Proposal No. 1: Appropriation of Surplus
As to the appropriation of surplus, the Company adheres to a policy of maintaining stable dividend inconsideration of the retained earnings level in addition to profits for the period while paying attention to thesystematic development of the logistics business centered on the Warehousing & Distribution Business, theCompany’s mainstay business, and of the Real Estate Business centered on building leases, strengthening its
financial structure in preparation for changes in its business environment. Additionally, under the Mediumterm Management Plan, for which fiscal year 2019 is the initial year, the Company will aim to further enhanceshareholder returns while improving corporate performance and capital efficiency during the period of the
management plan.
For the fiscal year ended March 31, 2021, we propose the year-end dividend of 30 yen per share, which isequivalent to the interim dividend, taking into account such factors as the above basic policies, and operating
results for the year and the retained earnings level. As a result, the annual dividend, including the interim
dividend, will be 60 yen per share, same as the previous fiscal year.
1. Matters regarding year-end dividends(1) Type of dividend property
Cash(2) Matters concerning the allotment of dividend property and its total amount
30 yen per share of common stock of the Company
The total amount: 2,480,930,190 yen(3) Effective date of the dividend of surplus
June 30, 2021
2. Other matters regarding appropriation of surplus(1) Item of surplus increased and its amountReserve for private insurance:
200,000,000 yen(2) Item of surplus decreased and its amount
Retained earnings brought forward: 200,000,000 yen

4Proposal No. 2: Election of Thirteen (13) Directors
The terms of office of all fourteen (14) Directors will expire at the conclusion of this year’s Annual General
Meeting of Shareholders. Accordingly, we nominate the following thirteen (13) candidates for Directors:
No.

1

2

3

Name
(Date of birth)

Past experience and significant concurrent positions

Number ofshares of theCompany held

April 1982
Joined the Company
June 2012
General Manager, International Business Coordination Chamber
Masao Fujikura
April 2015
General Manager, Osaka Branch
17,162(March 20, 1959)
June 2016
Director and General Manager, Osaka Branch
April 2017Managing Director; and General Manager, Osaka Branch
April 2018
President (current position)[Reason for nomination as candidate for Director]
Mr. Masao Fujikura had served as General Manager of International Business Coordination Chamber, etc. After his term ofoffice as Managing Director and General Manager of Osaka Branch, he is currently serving as President and oversees overallbusiness operation as a chief executive of the Company. He possesses a wealth of experience and professional knowledge for
the Company’s business operation, therefore, the Company nominated him as Director.
April 1982
Joined the Company
June 2012
General Manager, Warehousing and Distribution Business
Division
April 2015
Chairman of the Board of Mitsubishi Logistics China Co., Ltd.
April 2016
General Manager, Warehousing and Distribution Business
Hitoshi Wakabayashi
Division of the Company
13,174(January 22, 1960) June 2016
Director and General Manager, Warehousing and Distribution
Business Division
April 2017Managing Director
April 2019
Managing Director; and General Manager, Warehousing andDistribution Business Division
April 2020
Managing Director (current position)[Reason for nomination as candidate for Director]
Mr. Hitoshi Wakabayashi had long served in the General Affairs division and the Warehousing & Distribution Businessdivision in addition to his term of office as General Manager of Warehousing and Distribution Business Division and an
officer in charge of an overseas subsidiary controlling the business in China, etc. He is currently serving as Managing Director
responsible for Warehousing and Distribution Business Division. He possesses a wealth of experience and professional
knowledge for the Company’s business operation, therefore, the Company nominated him as Director.
April 1982
Joined the Company
June 2011
General Manager, Accounting & Financing Division
June 2016
Director and General Manager, Accounting & Financing
Yasushi Saito
Division
8,876(October 16, 1958)
April 2018
Managing Director; and General Manager, Accounting &Financing Division
June 2018
Managing Director (current position)[Reason for nomination as candidate for Director]
Mr. Yasushi Saito had long served in the Accounting & Financing division in addition to his term of office as General
Manager of Accounting & Financing Division, etc. He is currently serving as Managing Director responsible for Accounting& Financing and Information System. He possesses a wealth of experience and professional knowledge for the Company’sbusiness operation, therefore, the Company nominated him as Director.

5

No.

Name
(Date of birth)

Past experience and significant concurrent positions
April 1982
April 2014
April 2016

4

5

6

Number ofshares of theCompany held

Joined the Company
General Manager, Personnel Division
General Manager, General Affairs Division, Corporate
Communications Chamber and Personnel Division
Shinji Kimura
June 2017
Director and General Manager, General Affairs Division,
7,974(July 18, 1958)
Corporate Communications Chamber and Personnel Division
April 2018
Managing Director
April 2020
Managing Director; and General Manager, Technical Division
April 2021
Managing Director (current position)[Reason for nomination as candidate for Director]
Mr. Shinji Kimura had long served in the management division such as planning and the Harbor Transportation Businessdivision, in addition to his term of office as General Manager of General Affairs Division, Corporate Communications
Chamber and Personnel Division. He is currently serving as Managing Director responsible for Technical, Port and Harbor
Operation and Real Estate Business. He possesses a wealth of experience and professional knowledge for the Company’sbusiness operation, therefore, the Company nominated him as Director.
April 1982
Joined the Company
April 2014
General Manager, Nagoya Branch
Saburo Naraba
April 2017
General Manager, Tokyo Branch
10,374(October 17, 1958)
June 2018
Director and General Manager, Tokyo Branch
April 2019
Managing Director (current position)[Reason for nomination as candidate for Director]
Mr. Saburo Naraba had served as General Manager of Nagoya Branch and Tokyo Branch, and has long experience in the
Harbor Transportation Business division, as well as in the management division such as personnel. He is currently serving as
Managing Director responsible for General Affairs, Corporate Communications, Personnel, Planning and Internal Audit. He
possesses a wealth of experience and professional knowledge for the Company’s business operation, therefore, the Company
nominated him as Director.
April 1983
Joined the Company
April 2015
General Manager, Tokyo Branch
April 2017
General Manager, Warehousing and Distribution Business
Division
Hiroshi Nishikawa June 2018
Director and General Manager, Warehousing and Distribution
10,174(April 10, 1960)
Business Division
April 2019
Managing Director; and General Manager, International
Business Coordination Chamber
April 2021
Managing Director; and General Manager, Overseas Business
Planning & Coordination Division (current position)[Reason for nomination as candidate for Director]
Mr. Hiroshi Nishikawa had served as General Manager of Tokyo Branch and General Manager of Warehousing andDistribution Business Division, and has long experience in the International Transportation Business division including
overseas assignment, as well as in the Warehousing & Distribution Business division. He is currently serving as Managing
Director responsible for International Transportation Business Division. He possesses a wealth of experience and professional
knowledge for the Company’s business operation, therefore, the Company nominated him as Director.

6

No.

Name
(Date of birth)

Past experience and significant concurrent positions
April 1977
April 2012
April 2013
December 2013

7

8

Number ofshares of theCompany held

Joined Mitsubishi Trust and Banking Corporation
President of Mitsubishi UFJ Trust and Banking Corporation
Deputy Chairman of Mitsubishi UFJ Financial Group, Inc.
President and Chairman of Mitsubishi UFJ Trust and Banking
Corporation
June 2015
Director; Deputy Chairman of Mitsubishi UFJ Financial Group,
Inc.
Chairman of Mitsubishi UFJ Trust and Banking Corporation;
Tatsuo Wakabayashi April 20160
Director of Mitsubishi UFJ Financial Group, Inc.
(September 29, 1952)
June 2016Retired from Director of Mitsubishi UFJ Financial Group, Inc.
April 2020
Senior Advisor of Mitsubishi UFJ Trust and Banking
Corporation (current position)
June 2019
Director of the Company (current position)[Significant concurrent positions]
Senior Advisor of Mitsubishi UFJ Trust and Banking Corporation
Outside Director of Mitsubishi Materials Corporation[Reason for nomination as candidate for Outside Director and a summary of expected roles]
Mr. Tatsuo Wakabayashi has long been engaged in the corporate management of Mitsubishi UFJ Trust and Banking
Corporation and holds abundant knowledge and experience relating to banking and finance, etc. The Company nominatedhim in the belief that reflecting his broad insight and invaluable advice in the Company’s management is beneficial to theCompany’s growth and enhancement of corporate value and he is capable of supervising the Company’s management andDirectors effectively.
He currently serves as the chair of the Nomination and Compensation Committee of the Company. In addition to his
continuing contribution to ensuring and enhancing the objectivity and transparency of the procedures for determining thenomination and compensation of Directors as a member of the Committee, we expect his contribution to the Company’s
corporate governance through appropriate suggestions and recommendations from an objective standpoint independent ofexecutive management.
April 1977
Joined The Tokio Marine and Fire Insurance Co., Ltd.
April 2016
President & Chief Executive Officer of Tokio Marine & Nichido
Fire Insurance Co., Ltd.
June 2016
Director of Tokio Marine Holdings, Inc.
April 2019
Vice Chairman of the Board of Tokio Marine & Nichido Fire
Insurance Co., Ltd. (current position)
Toshifumi Kitazawa
June 2019
Retired from Director of Tokio Marine Holdings, Inc.
0
(November 18, 1953)
June 2019
Director of the Company (current position)[Significant concurrent positions]
Vice Chairman of the Board of Tokio Marine & Nichido Fire Insurance Co., Ltd.
Member of the Board of Directors (Outside Director) and Member of the Audit &Supervisory Committee of MUFG Bank, Ltd.
Outside Director of Sekisui House, Ltd.
[Reason for nomination as candidate for Outside Director and a summary of expected roles]
Mr. Toshifumi Kitazawa has long been engaged in the corporate management of Tokio Marine & Nichido Fire InsuranceCo., Ltd. and holds abundant knowledge and experience relating to risk management, finance, etc. The Company nominatedhim in the belief that reflecting his broad insight and invaluable advice in the Company’s management is beneficial to theCompany’s growth and enhancement of corporate value and he is capable of supervising the Company’s management andDirectors effectively.
He currently serves as a member of the Nomination and Compensation Committee of the Company. In addition to his
continuing contribution to ensuring and enhancing the objectivity and transparency of the procedures for determining thenomination and compensation of Directors as a member of the Committee, we expect his contribution to the Company’s
corporate governance through appropriate suggestions and recommendations from an objective standpoint independent ofexecutive management.

7

No.

Name
(Date of birth)

Past experience and significant concurrent positions
April 1978
April 2015

9

10

11

12

Number ofshares of theCompany held

Joined Nippon Yusen Kabushiki Kaisha
President, Representative Director, President Corporate Officerof Nippon Yusen Kabushiki Kaisha
June 2019
Chairman, Director, Chairman Corporate Officer of Nippon
Yusen Kabushiki Kaisha
Tadaaki Naito
June 2020
Chairman, Director, Chairman and Executive Officer of Nippon
0(September 30, 1955)
Yusen Kabushiki Kaisha (current position)
June 2020
Director of the Company (current position)[Significant concurrent positions]
Chairman, Director, Chairman and Executive Officer of Nippon Yusen Kabushiki
Kaisha[Reason for nomination as candidate for Outside Director and a summary of expected roles]
Mr. Tadaaki Naito has long been engaged in the corporate management of Nippon Yusen Kabushiki Kaisha and holds
abundant knowledge and experience relating to logistics operations, etc. which is the Company’s mainstay business. The
Company nominated him in the belief that reflecting his broad insight and invaluable advice in the Company’s management
is beneficial to the Company’s growth and enhancement of corporate value and he is capable of supervising the Company’s
management and Directors effectively.
We expect his contribution to the Company’s corporate governance through appropriate suggestions and recommendations
from an objective standpoint independent of executive management.
April 1976
Joined the Company
April 2017
General Manager, Nagoya Branch
Tatsushi Nakashima
8,197
June 2018
Director and General Manager, Nagoya Branch(November 29, 1957)
April 2020
Director and General Manager, Yokohama Branch (current
position)[Reason for nomination as candidate for Director]
Mr. Tatsushi Nakashima had long served in the Warehousing & Distribution Business division. He is currently serving as
Director and General Manager of Yokohama Branch. He possesses a wealth of experience and professional knowledge for
the Company’s business operation, therefore, the Company nominated him as Director.
April 1983
Joined the Company
April 2015
General Manager, Planning & Business Coordination Division
Akira Yamao
June 2019
Director and General Manager, Planning & Business
6,397(June 13, 1960)
Coordination Division
April 2020
Director and General Manager, Osaka Branch (current position)[Reason for nomination as candidate for Director]
Mr. Akira Yamao had long served in the Real Estate Business division in addition to the management division such asplanning. He is currently serving as Director and General Manager of Osaka Branch. He possesses a wealth of experienceand professional knowledge for the Company’s business operation, therefore, the Company nominated him as Director.
April 1977
Joined Nippon Telegraph and Telephone Public Corporation
June 2009
Director of the General Affairs Department of Nippon Telegraphand Telephone Corporation
June 2012
Senior Executive Vice President of NTT Communications
Tetsuya Shoji
Corporation(February 28, 1954) June 2015
0
President and CEO of NTT Communications Corporation
New candidate
June 2020
Corporate Advisor of NTT Communications Corporation(current position)[Significant concurrent positions]
Corporate Advisor of NTT Communications Corporation
Outside Director of Sapporo Holdings Limited[Reason for nomination as candidate for Outside Director and a summary of expected roles]
Mr. Tetsuya Shoji has long been engaged in the corporate management of NTT Communications Corporation and holds
abundant knowledge and experience relating to business operation innovation, etc. utilizing new digital technologies which
the Company has been promoting. The Company nominated him in the belief that reflecting his broad insight and invaluableadvice in the Company’s management is beneficial to the Company’s growth and enhancement of corporate value and he iscapable of supervising the Company’s management and Directors effectively.
We expect his contribution to the Company’s corporate governance through appropriate suggestions and recommendations
from an objective standpoint independent of executive management.

8

No.

Name
(Date of birth)

Past experience and significant concurrent positions

Number ofshares of theCompany held

April 1976
July 1996

13

Joined the Ministry of Health and Welfare
Drug Management and Policy Department of World HealthOrganization (on secondment)
July 1999
Organization for Pharmaceutical Safety and Research (onsecondment)
April 2000
Professor of Drug Management and Policy Department, Instituteof Medical, Pharmaceutical and Health Sciences, Kanazawa
University
Kazuko Kimura
April 2017
Professor Emeritus of National University Corporation(May 1, 1951)
0Kanazawa University (current position)
New candidate
October 2017
Specially Appointed Professor of Graduate School of Medical
Sciences of National University Corporation Kanazawa
University (current position)[Significant concurrent positions]
Specially Appointed Professor of Graduate School of Medical Sciences of National
University Corporation Kanazawa University
External Director of Takara Bio Inc.
Representative Director of Medicines Security Workshop[Reason for nomination as candidate for Outside Director and a summary of expected roles]
Ms. Kazuko Kimura, as a Ph.D. holder in pharmaceutical sciences, has served in prominent posts at external organizations
such as the World Health Organization after working for the Ministry of Health and Welfare and as professor at National
University Corporation Kanazawa University. In addition, she holds abundant knowledge and experience in the field of
medical and health care, etc., which are the Company’s core and focus areas. The Company nominated her in the belief thatreflecting her broad insight and invaluable advice from the viewpoint of diversity in the Company’s management is beneficial
to the Company’s growth and enhancement of corporate value and she is capable of supervising the Company’s management
and Directors effectively.
We expect her contribution to the Company’s corporate governance through appropriate suggestions and recommendations
from an objective standpoint independent of executive management.
Although she has not been involved in corporate management other than serving as an outside director in the past, theCompany believes that she can appropriately perform her duties as Outside Director for the reasons described above.
(Notes)1. There are no special interests between each candidate and the Company.
2. Responsibilities of the candidates at the Company who are incumbent Directors of the Company are as stated in the Business
Report (pages 19 through 20).
Additionally, the three Directors, Mr. Tatsuo Wakabayashi, Mr. Toshifumi Kitazawa and Mr. Tadaaki Naito are incumbent
Outside Directors of the Company.
3. The Company has concluded a directors and officers liability insurance contract provided for in Article 430-3, Paragraph 1 of
the Companies Act with an insurance company to insure Directors and Corporate Auditors. The contract covers damages andlitigation costs resulting from liability of the insured arising in the performance of their duties or claims received in the pursuitof such liability. The Company plans to renew the contract at expiration. The Company fully covers the insurance premiums.
If the election of each candidate for Director is approved, they will be insured under the said insurance contract.
4. Matters regarding the candidates for Outside Director are as follows.
(1) Five Directors, Mr. Tatsuo Wakabayashi, Mr. Toshifumi Kitazawa and Mr. Tadaaki Naito, Mr. Tetsuya Shoji and Ms.
Kazuko Kimura are candidates for Outside Director. If the election of each candidate for Director is approved, theCompany plans to designate them as independent officers as stipulated by Tokyo Stock Exchange, Inc. and registerthem with the said Exchange.
(2) Years of service as Outside Directors of the Company since their first appointment (until the conclusion of this year’s
Annual General Meeting of Shareholders)Mr. Tatsuo Wakabayashi: 2 years
Mr. Toshifumi Kitazawa: 2 years Mr. Tadaaki Naito: 1 year9

Proposal No. 3: Payment of Bonuses to Directors
We propose to pay bonuses to Directors, excluding Outside Directors, at the amount of 45,000,000 yen toeleven (11) Directors as of the end of the fiscal year under review.
The Company has decided on a policy for determining compensation of each Director at a meeting of theBoard of Directors held on February 26, 2021 and a summary of the policy is described on page 21 of theBusiness Report. The Board of Directors has decided to pay bonuses to Directors in this Proposal based onsuggestions from the Nomination and Compensation Committee, which deliberated on the matter according to
the policy for determination. Therefore, the Company considers it is appropriate given factors such as thebusiness results of the fiscal year under review.

10

(Appendix)

Business Report(April 1, 2020 - March 31, 2021)

I. Overview of the Company Group
1.
(1)

Business Progress and Results
Business Conditions
During the fiscal year under review, the global economy has remained in a difficult situation due tothe impact of the COVID-19 pandemic worldwide. Amid such circumstances, although the European
economy remained weak, the United States is steadily improving along with China showing a moderate
recovery. In Japan, the economy is still in a severe situation due to COVID-19 and although capital
investment and production have continued to improve, some indicators including consumer spending wereweak.
In these economic situations, the business environment surrounding the Group experienced an adverse
situation for both of the segments. In the Logistics Segment including the Warehousing and Harbor
Transportation operations, import and export cargoes decreased due to the impact of COVID-19 inaddition to intensifying competition with other companies and increased costs owing to labor shortages.
In the Real Estate Segment, customer footfall dropped in some commercial facilities due to changes in
consumer behavior and other factors, and the declaration of a state of emergency was issued twice.
Under these circumstances, Mitsubishi Logistics Corporation and its subsidiaries and affiliates(collectively, the “Group”) promoted marketing activities while taking measures to prevent the spread of
infection. In the Logistics Segment, we made efforts including the expansion of distribution operations
especially for pharmaceuticals, and maintaining the volume of international freight. In the Real Estate
Segment, we focused our efforts on securing tenants, and maintaining and improving rent levels.
Meanwhile, we endeavored to improve business performance thorough cost management and further
improvement of efficiency in business operations.
As a result, revenue for the fiscal year under review amounted to 213,729 million yen, a decrease of
15,328 million yen, or 6.7% from the previous fiscal year. In the Logistics Segment, revenue decreased
due to a reduction in freight handled in the Warehousing & Distribution, Overland Transportation, Harbor
Transportation, and international transportation businesses owing to the impact of COVID-19. In the Real
Estate Segment, revenue decreased due mainly to the temporary closure of tenants at some commercial
facilities caused by the impact of COVID-19 in the real estate leasing business and a decrease in property
sales in the condominium sales business. On the other hand, cost of services overall decreased 14,265
million yen, or 6.9% from the previous fiscal year to 191,875 million yen. In the Logistics Segment,
operational and transportation consignment costs decreased with a decrease in freight handled. Also in theReal Estate Segment, real estate sales costs mainly decreased in line with a decrease in condominiums
sold. Selling, general and administrative expenses decreased 602 million yen, or 5.6% from the previous
fiscal year to 10,118 million yen due mainly to a decrease in expenses.
As a result, operating income decreased by 460 million yen, or 3.8% year on year to 11,735 million
yen, reflecting the decrease in income in the Real Estate Segment offsetting a slight increase in income in
the Logistics Segment. Ordinary income decreased by 808 million yen, or 4.8% to 16,013 million yen,reflecting a decrease in dividend income and other factors. Profit attributable to owners of parent increasedby 27,308 million yen, or 230.4% from the previous fiscal year to 39,160 million yen. This was mainly
due to recognizing extraordinary income from gain on disposal of non-current assets, compensation
income, etc. (36,600 million yen in total) as a result of factors such as the partial transfer of a site for theCompany’s Real Estate Business around Nagoya Station. In addition, an increase in gain on sale ofmarketable securities and investments in securities generated from sales of some cross-shareholdings also
contributed.
Performance by business segment of the Group was as follows.
1) Logistics Segment
Although cargo storage and logistics facilities leasing has remained steady in the Warehousing &Distribution Business, the volume of freight handled has decreased due to the impact of COVID-19 ineach of the Warehousing & Distribution, Overland Transportation, Harbor Transportation, and11international transportation businesses. In the Warehousing & Distribution and Overland Transportation
Businesses, despite increased transactions for pharmaceuticals and household goods, etc., transactions forautomotive components and beverages, etc. decreased, resulting in a 1.0% decline in revenue from theprevious fiscal year to 55,954 million yen in the Warehousing & Distribution Business, and revenue in theOverland Transportation Business decreased by 7.5% from the previous fiscal year to 48,214 million yen.
Also in the Harbor Transportation Business, revenue decreased by 8.4% from the previous fiscal year to
21,332 million yen due mainly to a decrease in container freight handling volume. In the internationaltransportation business, factors such as a decline in export and import freight handled resulted in a 7.2%
decline in revenue from the previous fiscal year to 46,514 million yen.
As a result, overall revenue in the Logistics Segment was 179,255 million yen, down 10,453 million
yen, or 5.5% from the previous fiscal year. Also, operating expenses were down by 10,501 million yen, or
5.8%, from the previous fiscal year to 172,023 million yen due to a decrease in operational andtransportation consignment costs in line with a decrease in freight handling volume as well as declines in
expenses such as personnel expenses and repair expenses. Due to the above, operating income was 7,232
million yen, an increase of 48 million yen, or 0.7% from the previous fiscal year.
2) Real Estate Segment
In the mainstay real estate leasing business, revenue decreased by 1.2% from the previous fiscal year
to 28,446 million yen due mainly to the temporary closure of tenants at some commercial facilities causedby the impact of COVID-19. Other revenue decreased by 37.9% from the previous fiscal year to 7,706
million yen due mainly to a decrease in property sales in the condominium sales business.
As a result, overall revenue in the Real Estate Segment was 36,153 million yen, down 5,046 million
yen, or 12.2% from the previous fiscal year. Operating expenses were down by 4,225 million yen, or
13.9% from the previous fiscal year to 26,114 million yen, primarily due to a decrease in real estate sales
costs as sales of condominiums decreased. Due to the above, operating income was 10,038 million yen, adecrease of 820 million yen, or 7.6% from the previous fiscal year.
Revenue by segment

Categories(Millions of yen unless otherwise stated)
Year-on-year change
Fiscal year
Fiscal year
ended March
ended March
Percentage
Amount31, 2021
31, 2020(%)
179,255
189,709(10,453)(5.5)[55,954][56,507][(552)][(1.0)][48,214][52,132][(3,918)][(7.5)][21,332][23,295][(1,962)][(8.4)][46,514][50,138][(3,623)][(7.2)][7,239][7,635][(396)][(5.2)]
36,153
41,199(5,046)(12.2)[28,446][28,787][(341)][(1.2)][7,706][12,412][(4,705)][(37.9)]Logistics Segment[Warehousing & Distribution Business][Overland Transportation Business][Harbor Transportation Business][International Transportation Business][Other]Real Estate Segment[Real Estate Leasing Business][Other]Elimination of inter-segment(1,679)(1,851)171－
transactions
Total
213,729
229,057(15,328)(6.7)(Note) Elimination of inter-segment transactions refers to the elimination of inter-segment transactions
included in the revenue of the Logistics Segment and Real Estate Segment.

12

(2)

Capital Investments
The Group made capital investments in the total amount of 38,817 million yen for construction of
warehouses, purchase of land and facilities for lease, etc.
The main investments made during the fiscal year under review were as follows.
1) Completed Warehouses
Saitama: Misato Distribution Center No. 2 (Phase 2)[Completed in October 2020]
Warehouses(four stories, floor area of approx. 27,700 m2)
2) Purchased land and facilities for lease
Nagoya: Site for Real Estate Business in Meieki 3-chome, [Purchased in April 2020]
Nakamura-ku(approx. 2,500 m2, of which the Company holds 74.6% joint equity)
Nagoya: Meieki Dia Meitetsu Building[Purchased in June 2020]
Offices and stores for lease(14 stories, floor area of approx. 18,900 m2, of which the Company holds 78.6%
joint equity)Land(approx. 2,200 m2, of which the Company holds 1,400 m2)
Tokyo:
Office building for lease in Nihonbashi 1-chome, [Purchased in December 2020]
Chuo-ku (two buildings)• Offices for lease (seven stories, floor area of approx. 2,200 m2)
Land (approx. 400 m2)• Offices for lease (eight stories, floor area of approx. 1,000 m2)
Land (approx. 200 m2)
3) Facilities for lease under large-scale renovation
Tokyo:
Eitai Dia Building[Renewal work for power
substation facilities: Scheduled
for completion in March 2022]
Rental building for computer-processing center(14 stories, floor area of approx. 29,900 m2)(3)

Financing
The capital investments and operating capital of the Group were funded by cash on hand andborrowings from financial institutions.
Additionally, the Company redeemed the 14th unsecured bonds (total face value 5 billion yen; issued
March 12, 2014) on March 12, 2021.

(4)

Future Outlook and Issues
In the future world economy, although the risk due to resurgence of COVID-19 is concerning, a steady
improvement in the U.S. and a gradual recovery in China are expected to continue. In addition, the stateof the Japanese economy is expected to continue improving owing to the effects of various policies andimprovements in overseas economies, as measures are taken to prevent the spread of COVID-19.
In this economic climate, under the business environment surrounding the Group, extremely harshsituations continue due to intensified competition and an increase in cost resulting from labor shortages,
despite recovery in freight movement expected in the logistics industry including the Warehousing &Distribution as well as Harbor Transportation Businesses. There is concern that business conditions may
become stagnant in the Real Estate Business due mainly to a decrease in sales at commercial facilities
affected by COVID-19 and a decline in demand for rental office buildings.
Under these circumstances, the Group upholds a vision “MLC2030 Vision” to be accomplished in
2030, and by giving first priority to “contributing to the improvement of customer’s value,” we aim to bea corporate group that continues to be selected by customers both in Japan and overseas as a logistics
company that consistently handles the supply chain from procurement to distribution and sales as a partnerof customers.
Specifically, we will implement the following measures.
1) The Group will establish a customer-oriented support system with a focus on the medical/healthcare, food/beverage, and machinery/electrical machine industries as priority areas, and will takeon comprehensive supply chain challenges as the customer’s partner. Through these efforts, theGroup will seek to expand its business domain and boost its market share.
132) Overseas, the Group will move forward with system enhancements to support customer supply
chains in the medical/health care and food/beverage industries and strengthen its forwarding
business with demand for high quality cold chains expected to grow in a number of regions suchas Southeast Asia (ASEAN).
3) The Group will further enhance the competitiveness of its Harbor Transportation Business byleveraging its cargo handling services, the efficiency of which is ranked among the highest
globally, while at the same time developing complexes and facilities and boosting its operational
capability in the Real Estate Business. By doing so, it will seek to secure stable profits.
4) The Group will review the operational processes of all businesses and facilitate efficient
operations by utilizing new technologies such as IoT, AI and robotics. Through these efforts, itaims to improve service quality and production efficiency.
5) The Group aims for growth by strengthening cost competitiveness through organizational
management across the Company and its Group companies and securing/developing humanresources, particularly in the priority areas.
At the same time, according to the Medium-term Management Plan (2019–2021) which positions
the three-year period from fiscal 2019 to fiscal 2021 as the first stage for a leap toward theachievement of the “MLC2030 Vision”, for further growth of the Group, and in order to meet the
expectations of stakeholders, including our customers, group employees, shareholders andinvestors, we will work to ensure the implementation of the following measures and strive toachieve the “MLC2030 Vision.”
1)
Strengthening the business foundations of the priority areas
2)
Establishing a system that leverages new technologies
3)
Maintaining competitiveness in the Harbor Transportation Business
4)
Developing complexes and other facilities for the Real Estate Business and improving theorganizational structure thereof to strengthen operational capabilities
5)
Bolstering production efficiency through more efficient operational processes and othermeans
6)
Improving operational conditions to reform workstyles and create innovation
7)
Increasing shareholder returns
8)
Promoting CSR-oriented management
Furthermore, we have created a value-creation story mainly based on our corporate philosophy,
MLC2030 Vision, the basic policy of the Management Plan (2019-2021), and CSR activities to date. In
addition, we have set six key themes based on social issues to be addressed ((i) Safety, security and disaster
response, (ii) Environmental measures, (iii) Cutting-edge technology, innovation, (iv) Partnership, (v)Human resource development, employee satisfaction, (vi) Compliance, human rights, gender) as well as
measures, evaluation indicators, and target values for each theme to promote initiatives to realize ESG
management and contribute to achieving targets of SDGs.
The Group engages in the business of logistics and real estate, which function as social infrastructure,and help to achieve a “sustainable” society, very much in the spirit of the SDGs. The Group will aim for its
sustainable growth by identifying growth opportunities for business as it strives to solve environmental andother social issues.

14

2.

The Group
The Company

Trends in Assets and Income
Trends in assets and income of the Group and the Company for the fiscal year under review and thelast three fiscal years are as follows.
(Millions of yen unless otherwise stated)
The 215th fiscal The 216th fiscal The 217th fiscal Fiscal year
year
year
year
under review
Item(April 1, 2017 - (April 1, 2018 - (April 1, 2019 - (April 1, 2020 March 31, 2018) March 31, 2019) March 31, 2020) March 31, 2021)
Revenue
215,407
227,185
229,057
213,729
Operating income
12,421
12,66012,195
11,735
Ordinary income
16,16017,333
16,822
16,013
Profit attributable to owners
10,517
11,564
11,851
39,160of parent
Basic earnings per share
120.07132.03137.31462.28(yen)
Total assets
462,031482,575
468,243535,761
Total net assets
294,550
299,104
286,356
326,829
Revenue
148,610
157,432
160,031
151,553
Operating income
9,665
9,016
8,899
9,376
Ordinary income
15,382
14,61913,616
13,964
Net income
10,701
10,125
10,10938,573
Basic earnings per share
122.12115.55117.08455.16(yen)
Total assets
412,693433,462
416,534
483,917
Total net assets
270,422
274,400
260,685
299,249(Notes)
1. As the Company carried out the reverse stock split at a ratio of one share for every two shares of common stock, with aneffective date of October 1, 2017, basic earnings per share of the Group and the Company are calculated based on theassumption that the reverse stock split was conducted at the beginning of the 215th fiscal year.
2. As the Company applied “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ
Statement No. 28, February 16, 2018), etc., from the beginning of the 216th fiscal year, total assets of the Groupand the Company in the 215th fiscal year are amounts after applying the accounting standard etc., retroactively.
3. The decrease in operating income, ordinary income, net income, and basic earnings per share in the 216th fiscal
year was primarily due to an increase in personnel expenses and depreciation and amortization in addition toinitial expenses associated with the start of operations at a new distribution center.
4. The decrease in operating income and ordinary income of the Group and the Company in the 217th fiscal year
was primarily due to a decrease in freight handled in the Harbor Transportation and international transportation
businesses.
5. The Company’s operating income and ordinary income increased in the fiscal year under review mainly because
selling, general and administrative expenses decreased in addition to cargo storage and logistics facilities rental
in the Warehousing & Distribution Business remaining steady. The Group’s profit attributable to owners of parent
and basic earnings per share, and the Company’s net income and basic earnings per share increased because werecorded extraordinary income including gain on disposal of non-current assets and compensation income as aresult of partial transfer of a site for the Company’s Real Estate Business around Nagoya Station, among others.
6. Basic earnings per share of the Group and of the Company are calculated based on the weighted-average number ofshares issued during the relevant period and are rounded off to the second decimal place.

15

3.

Material Subsidiaries
Company name

The Company’s
Capitalpercentage of equity(Millions of yen) participation (%)

Fuji Logistics Co., Ltd.

2,979

95.0

Ryoso Transportation Co.,
Ltd.

360

100

Dia Buil-Tech Co., Ltd.

100

100

Shinryo Koun Co., Ltd.

36

86.0

Mitsubishi Logistics China
Co., Ltd.

RMB250
million100

P.T. Mitsubishi Logistics
Indonesia
Mitsubishi Logistics
America Corporation
Mitsubishi Logistics Europe
B.V.

IDR631,665
million
USD10,000
thousand
EUR2,500
thousand

99.9
100
100

Principal business
Warehousing & Distribution
Business
Overland Transportation
Business
Real Estate Managing
Business
Port and Harbor Operation
BusinessTB
Investment in Logistics
Business in China andmanagement of affiliate
logistics companies
Warehousing & Distribution
Business
International Transportation
Business
International Transportation
Business

The number of the consolidated subsidiaries subject to consolidated accounting is 50 (a decrease of 1
company from the previous fiscal year) including 8 material subsidiaries shown above, while the number
of affiliates subject to the equity method is 3. The majority of these companies are engaged in operations
and transportation related to the logistics business and management of buildings related to the Real EstateBusiness.
4.

Principal Business(1) Logistics Segment
1) Warehousing & Distribution BusinessBusiness conducting storage and handling of incoming and outgoing cargo, etc. at warehouses
containing consigned items
2) Overland Transportation BusinessBusiness conducting transport and usage transport, etc. by freight automobiles
3) Harbor Transportation BusinessBusiness conducting coastal cargo handling and onboard cargo handling, etc. at ports
4) International Transportation BusinessBusiness conducting handling of international product transport, etc. (including handlingdomestic marine cargo transport)(2) Real Estate Segment
Business conducting consignment, design and oversight of purchase, leasing, management
and construction of real estate

16

5.

Principal Business Locations(1) The Company
Headquarters: Chuo-ku, Tokyo
Branches: Tokyo, Yokohama, Nagoya, Osaka, Kobe and Fukuoka(2) Subsidiaries
1) Logistics Segment
Fuji Logistics Co., Ltd. (Minato-ku, Tokyo)
Ryoso Transportation Co., Ltd. (Koto-ku, Tokyo)
Shinryo Koun Co., Ltd. (Chuo-ku, Kobe)
Mitsubishi Logistics China Co., Ltd. (Shanghai, China)
P.T. Mitsubishi Logistics Indonesia (Jawa Barat, Indonesia)
Mitsubishi Logistics America Corporation (New York City, State of New York, U.S.A)
Mitsubishi Logistics Europe B.V. (Ridderkerk, South Holland, The Netherlands)
2) Real Estate Segment
Dia Buil-Tech Co., Ltd. (Chuo-ku, Tokyo)

6.

Employees(1) Employees of the Group
Categories
Logistics Segment
Real Estate Segment
Administrative segment,
Headquarters of the Company
Total

Number of employees(Changes from previous fiscal year-end)
4,229 (decreased 26)
288 (decreased 9)
81 (increased 8)
4,598 (decreased 27)(Notes)1. The figures in the above table do not include 44 persons on leave and seconded outside of
the Group.
2. Separate from the above, there are 1,259 temporary employees and 1,311 seconded andcontracted employees from outside the Group.

(2) Employees of the Company
Number of employees (Changes
from previous fiscal year-end)
996 (increased 44)

Average age

Average years of service

39 years,
8 months

15 years, 8 months(Notes)1. The figures in the above table do not include 106 persons on leave and seconded outside of
the Company.
2. Separate from the above, there are 172 temporary employees and 633 seconded andcontracted employees from within and outside of the Group.
3. Average ages and average years of service are rounded down to the nearest month.

7.

Material Lenders
Amount of borrowings(Millions of yen)
37,5038,520

Lender
MUFG Bank, Ltd.
The Norinchukin Bank

17

II. Status of Shares
1.
Matters concerning Shares(1) Authorized shares

220,000,000 shares(2) Number of shares issued, capital and number of shareholders
End of fiscal year
Previous fiscal
Item
under review
year-end
87,960,739
Number of shares issued (shares)
87,960,739
Capital (yen)22,393,986,570
22,393,986,570
Number of shareholders (persons)
6,323
6,714
(Notes)Changes from theprevious fiscal year-end
00
391 (decreased)

Number of shares issued includes 5,263,066 shares of treasury shares.

(3) Major shareholders
Shareholder name

Number of shares

Shareholding ratio%

Thousand shares

The Master Trust Bank of Japan, Ltd. (trust account)
Custody Bank of Japan, Ltd. (trust account)
Meiji Yasuda Life Insurance Company
MITSUBISHI ESTATE CO., LTD.
STATE STREET BANK AND TRUST COMPANY 505001
Tokio Marine & Nichido Fire Insurance Co., Ltd.
AGC Inc.
MUFG Bank, Ltd.
TAKENAKA CORPORATION
Kirin Holdings Company, Limited(Notes)1.
2.
3.

13,907
5,317
5,153
3,665
2,095

16.8
6.4
6.2
4.4
2.5

2,041
1,657
1,505
1,505
1,482

2.5
2.0
1.8
1.8
1.8

In addition to the above, the Company holds 5,263 thousand shares of treasury shares.
MUFG Bank, Ltd. has set 750 thousand shares of the Company as trust funds for retirement benefits for which
voting rights are reserved, in addition to the shares stated in the table above.
The “Shareholding ratio” is calculated after excluding treasury shares (5,263,066 shares).

(4) Status of shares delivered to corporate executives as consideration for execution of their duties during the
fiscal year under review
To incentivize eligible officers to sustainably increase the Company’s corporate value and promote thefurther sharing of value with shareholders, shares are delivered to Directors excluding Outside Directors ascompensation for granting restricted stock. The stock cannot be disposed of until the recipient retires orresigns from the position of the Company’s Director or other positions decided by the Company’s Boardof Directors.
Type and number of shares
Number of eligible officers
Directors (excluding Outside
Common stock of the Company
11 persons
Directors)
19,994 shares
Outside Directors
Corporate Auditors-182. Company Officers(1)

Directors and Corporate Auditors
Position

Areas of responsibility or significant
concurrent positions

Name

President *Masao Fujikura

Managing Director

Yoshiji Ohara

Responsible for Harbor Transportation
Business

Managing Director

Hitoshi Wakabayashi

Responsible for Warehousing &Distribution Business

Managing Director

Yasushi Saito

Responsible for Accounting & Financing
and Information System

Managing Director

Shinji Kimura

Responsible for Planning, Technical andReal Estate Business, General Manager,
Technical Division

Managing Director *Saburo Naraba

Managing Director

Hiroshi Nishikawa

Director

Tatsuo Wakabayashi

Director

Toshifumi Kitazawa

Director

Tadaaki Naito

Director

Tatsushi Nakashima

General Manager, Yokohama Branch

Director

Akira Yamao

General Manager, Osaka Branch

Director

Akio Miura

General Manager, Nagoya Branch

Director

Masanori Maekawa

General Manager, General Affairs
Division, Corporate Communications
ChamberStanding Corporate
Auditor(full time)

Tohru Watanabe

Corporate Auditor(full time)
Corporate Auditor

Responsible for General Affairs, Corporate
Communications, Personnel, and Internal
Audit
Responsible for International
Transportation Business, General Manager,
International Business Coordination
Chamber
Senior Advisor, Mitsubishi UFJ Trust andBanking Corporation
Vice Chairman of the Board, Tokio Marine& Nichido Fire Insurance Co., Ltd.
Chairman, Director, Chairman andExecutive Officer, Nippon Yusen
Kabushiki Kaisha

Mikine Hasegawa
Yohnosuke Yamada

LawyerCorporate Auditor

Takao Sato

Certified Public Accountant

Corporate Auditor

Junya Miura

Full-time Corporate Auditor, Ryoso
Transportation Co., Ltd.

19

(Notes)

1.
2.

3.

4.
5.
6.
7.

8.

9.

Directors with an asterisk (*) are Representative Directors.
Of Directors, Mr. Tatsuo Wakabayashi, Mr. Toshifumi Kitazawa and Mr. Tadaaki Naito are Outside
Directors as stipulated by Article 2, item 15 of the Companies Act. The Company designated them as
independent officers as stipulated by Tokyo Stock Exchange, Inc. and registered them with the said
Exchange.
Of Corporate Auditors, Mr. Mikine Hasegawa, Mr. Yohnosuke Yamada and Mr. Takao Sato are
Outside Corporate Auditors as stipulated by Article 2, item 16 of the Companies Act. The Company
designated them as independent officers as stipulated by Tokyo Stock Exchange, Inc. and registeredthem with the said Exchange.
Corporate Auditor Mr. Takao Sato is a Certified Public Accountant and has a considerable knowledge
regarding finance and accounting.
The Company has transactions such as insurance contract with Tokio Marine & Nichido Fire
Insurance Co., Ltd.
The Company has mutual transactions in logistics operation consignment, etc. with Nippon Yusen
Kabushiki Kaisha.
In addition to the above, the significant concurrent positions of Outside Officers are stated in “(3)Matters concerning Outside Directors” and “(4) Matters concerning Outside Corporate Auditors”
below.
The Directors and Corporate Auditors who retired during the fiscal year under review were as follows:(1) Retired on June 26, 2020
Chairman of the Board Akio Matsui
Director Koji Miyahara
Corporate Auditor Hiroshi Imai
(2) Resigned on June 26, 2020
Corporate Auditor Kenji Sakurai
Of Directors shown above, positions and responsibilities were changed as follows on April 1, 2021.
(Previous positions)(New positions and responsibilities)
Managing Director
Yoshiji Ohara
Director (-)
Managing Director
Shinji KimuraManaging Director (Responsible for Technical, Portand Harbor Operation, and Real Estate Business)
Managing Director
Saburo Naraba
Managing Director (Responsible for General Affairs,
Corporate Communications, Personnel, Planning,and Internal Audit)
Managing Director
Hiroshi Nishikawa
Managing Director (Responsible for International
Transportation Business, General Manager, Overseas
Business Planning & Coordination Division)

20

(2) Compensation to Directors and Corporate Auditors for the Fiscal Year under Review
1) Policy for determining details of compensation for each Director
The Company resolved the policy at the meeting of the Board of Directors based on suggestions fromthe Nomination and Compensation Committee upon consulting with the Committee.
(i) Policy for determining the amount of basic compensation for each Director, details of performancebased compensation and nonmonetary compensation and calculation method of their amount or figures(including policy for determining timing and conditions of providing compensation)
Compensation for Directors shall consist of basic compensation, performance-based compensation,and stock compensation at amounts based on their duties and the compensation level of society ingeneral.
Basic compensation shall be paid according to the position of each Director as monthly fixedcompensation within the limit of compensation determined at a general meeting of shareholders.
Performance-based compensation shall be bonuses for Directors excluding Outside Directors. A
general meeting of shareholders shall resolve the total amount determined according to theperformance indicator of the previous fiscal year and payment is to be made at a specific timing every
year. Ordinary income shall be adopted as the performance indicator as it reflects profits from ordinary
business activities in general and is deemed appropriate as a quantitative indicator. A proposal of thetotal amount of bonuses shall be determined based on a calculation table providing the amounts
according to the level of ordinary income for the previous fiscal year.
Stock compensation is intended to incentivize recipients to sustainably increase the Company’s
corporate value and promote the further sharing of value with shareholders. Payment is to be made ata specific timing every year at an amount deemed reasonable in light of the purpose within thecompensation limit determined at a general meeting of shareholders to Directors excluding Outside
Directors as compensation for granting restricted stock. The stock cannot be disposed of until therecipient retires or resigns from the position of the Company’s Director or other positions decided by
the Company’s Board of Directors.
(ii) Policy for determining the ratio of monetary compensation, performance-based compensation, andnonmonetary compensation for each Director
The payment amount per type of compensation for each Director shall be determined so that theratio per type of compensation for each Director will function as an appropriate incentive
commensurate with the duties expected for each position.
To link compensation with medium- to long-term business performance, the Company’s sharesshall be acquired through the officer stock ownership plan using contributions from monthly
compensation and bonuses at amounts not less than those set for each position. All the shares purchased
shall be held throughout the service period and until one year after retirement.
(iii) Determination of details of compensation for each Director
Based on the above policy, matters such as the compensation limit to be submitted to the general
meeting of shareholders, drafts of proposals regarding payment of bonuses and stock compensation,
and allotment of each type of compensation for each individual shall be discussed by the Nomination
and Compensation Committee. The Committee was established as an advisory body to the Board of
Directors mainly comprising independent Outside Directors to further enhance the objectivity andtransparency of the procedures for determining the nomination and compensation of Directors. Basedon the suggestions of the Committee, the Board of Directors shall discuss and resolve the matter at its
meetings attended by Outside Directors and Outside Corporate Auditors.
Details of compensation for each Director for the fiscal year under review are deemed to conformto the above policy because the Board of Directors determined them based on suggestions from theNomination and Compensation Committee which deliberated on the matter according to the above
policy.

21

2) Policy for determining the amount of compensation for Corporate Auditors and its calculation method
Compensation for Corporate Auditors is determined by discussion between Corporate Auditors within
the compensation limit resolved at a general meeting of shareholders.
3) Resolution of the general meeting of shareholders concerning compensation for Directors and Corporate
Auditors
The upper limit on total compensation for Directors is 600 million yen per year (of which, 100 million
yen per year for Outside Directors; resolved at the 216th Annual General Meeting of Shareholders held on
June 27, 2019; not including the portion of employees’ salary for Directors who concurrently serve as
employees), with 120 million yen per year for Corporate Auditors (resolved at the 216th Annual General
Meeting of Shareholders held on June 27, 2019). There were 15 Directors (including 4 Outside Directors)
and 5 Corporate Auditors at the conclusion of the 216th Annual General Meeting of Shareholders held on
June 27, 2019.
Within the scope of compensation limit for Directors stated above, the Company provides monetarycompensation for granting restricted stock to Directors excluding Outside Directors (150 million yen per year
for up to 100 thousand shares of the Company’s common stock; resolved at the 217th Annual General
Meeting of Shareholders held on June 26, 2020). There were 11 Directors excluding Outside Directors at
the conclusion of the 217th Annual General Meeting of Shareholders held on June 26, 2020.
Subject to the approval and resolution of Proposal No. 3 “Payment of Bonuses to Directors” at the 218th
Annual General Meeting of Shareholders to be held on June 29, 2021, the Company plans to provide a totalof 45 million yen as Directors’ bonuses to 11 Directors excluding Outside Directors at the end of the fiscal
year under review.
4) Total amount of compensation for Directors and Corporate Auditors, etc.
Total amount per type of compensation
Total amount(Millions of yen)of
Bonuses
Restricted stock
Category
compensation
Basic(performancecompensation(Millions ofcompensation
based(nonmonetaryyen)
compensation)compensation)
Directors
489
404
45
40
[of which, Outside
[31]
[31]
[－]
[－]
Directors]
Corporate Auditors
78
78
－
－
[of which, Outside
[42]
[42]
[－]
[－]
Corporate Auditors](Notes)

1.

2.

3.

Number of
eligible
executives(Persons)
16
[4]
7
[4]

Ordinary income is adopted as the performance indicator for bonuses as it reflects profits fromordinary business activities in general and is deemed appropriate as a quantitative indicator. The total
amount of bonuses shall be determined based on a calculation table providing the amounts according
to the level of ordinary income. Consolidated ordinary income for the 218th term was 16,013 million
yen and non-consolidated ordinary income was 13,964 million yen. Amount of bonuses above is tobe paid subject to the approval and resolution of Proposal No. 3 “Payment of Bonuses to Directors”
at the 218th Annual General Meeting of Shareholders to be held on June 29, 2021.
The amount of the restricted stock compensation above is the amount expensed as restricted stockcompensation for the fiscal year under review. Details of stock compensation and status of theirdelivery are as described in “1. Matters concerning Shares, (4) Status of shares delivered to corporate
executives as consideration for execution of their duties during the fiscal year under review.”
In addition to the payment amounts mentioned above, the portion of employees’ salary of 78 million
yen were paid to Directors concurrently serving as employees (4 persons during the fiscal year underreview).

22

(3) Matters concerning Outside Directors
1) Significant concurrent positions at other corporations, etc.
Name
Company name
Tatsuo Wakabayashi
Mitsubishi Materials Corporation
Toshifumi Kitazawa

MUFG Bank, Ltd.

Sekisui House, Ltd.
(Notes)Title
Outside Director
Member of the Board of Directors(Outside Director) and Member of the
Audit & Supervisory Committee
Outside Director

1.

The Company has transactions such as logistics operation consignment, etc. with Mitsubishi
Materials Corporation.
2. The Company has transactions such as loans and logistics operation consignment, etc. with MUFG
Bank, Ltd.
3. The Company has transactions such as logistics operation consignment, etc. with Sekisui House,

Ltd.

2) Main activities
Mr. Tatsuo Wakabayashi participated in all 12 meetings of the Board of Directors held during the
fiscal year under review. He has adequately fulfilled his responsibilities as Director by expressing his
opinions actively at the meetings of the Board of Directors from an independent and objective
standpoint and striving to supervise the Company’s management and Directors based on insight gained
through having long been engaged in the corporate management of Mitsubishi UFJ Trust and Banking
Corporation and his abundant knowledge and experience in banking and finance, etc.
As the chair of the Nomination and Compensation Committee, he participated in all 5 meetings of
the Committee held during the fiscal year under review and contributed to maintaining and enhancing
the objectivity and transparency of the procedures for determining the nomination and compensationof Directors.
Mr. Toshifumi Kitazawa participated in all 12 meetings of the Board of Directors held during the
fiscal year under review. He has adequately fulfilled his responsibilities as Director by expressing his
opinions actively at the meetings of the Board of Directors from an independent and objective
standpoint and striving to supervise the Company’s management and Directors based on insight gained
through having long been engaged in the corporate management of Tokio Marine & Nichido Fire
Insurance Co., Ltd. and his abundant knowledge and experience in risk management, finance, etc.
As a member of the Nomination and Compensation Committee, he participated in all 5 meetings of
the Committee held during the fiscal year under review and contributed to maintaining and enhancing
the objectivity and transparency of the procedures for determining the nomination and compensationof Directors.
Mr. Tadaaki Naito participated in 9 meetings out of the 9 meetings of the Board of Directors. He
has adequately fulfilled his responsibilities as Director by expressing his opinions actively at themeetings of the Board of Directors from an independent and objective standpoint and striving tosupervise the Company’s management and Directors based on insight gained through having long been
engaged in the corporate management of Nippon Yusen Kabushiki Kaisha and his abundant knowledge
and experience in logistics operations, etc.
(Note) As Mr. Tadaaki Naito was elected as Director at the 217th Annual General Meeting of
Shareholders held on June 26, 2020, the number indicated is his attendance at the subsequent 9
meetings of the Board of Directors.

23

(4) Matters concerning Outside Corporate Auditors
1) Significant concurrent positions at other corporations, etc.
Name
Company name
Yohnosuke Yamada
SANYO TRADING CO., LTD.
Takao Sato
IX Knowledge Inc.
(Note)

Title
Outside Director
Outside Director

The Company has transactions such as logistics operation consignment, etc. with SANYO TRADING
CO., LTD.

2) Main activities
During the fiscal year under review, the Company held 16 meetings of the Board of Corporate
Auditors. Mr. Mikine Hasegawa participated in 16 meetings, Mr. Yohnosuke Yamada in 16 meetings,
and Mr. Takao Sato in 12 meetings. During the fiscal year under review, the Company held 12 meetingsof the Board of Directors. Mr. Mikine Hasegawa participated in 12 meetings, Mr. Yohnosuke Yamada
in 12 meetings, and Mr. Takao Sato in 9 meetings. Each of Outside Corporate Auditors stated invaluable
opinions from an objective and professional standpoint backed by their accumulated experiences as alawyer and a certified public accountant, respectively.
(Note) As Mr. Takao Sato was elected as Corporate Auditor at the 217th Annual General Meeting of
Shareholders held on June 26, 2020, the number indicated is his attendance at the subsequent 12
meetings of the Board of Corporate Auditors and 9 meetings of the Board of Directors.

24

3.

Accounting Auditor(1)

Accounting Auditor’s Name
KPMG AZSA LLC(2)Compensation for Audit Service Set Forth in Article 2, Paragraph 1 of the Certified Public
Accountants Act
67 million yen(Notes)
1. Upon confirming the content of the audit plan, the conditions of the execution status of theaccounting audit, and the assumptions for calculating remuneration estimates, etc., of the
Accounting Auditor, the Board of Corporate Auditors has given its approval under Article 399,
Paragraph 1 of the Companies Act for the remuneration, etc., of the Accounting Auditor.
2. Under the audit agreement between the Company and its Accounting Auditor, compensation foraudits pursuant to the Companies Act and audits pursuant to Financial Instruments and Exchange
Law are not strictly separated, and otherwise cannot be separated. Consequently, the above
amount reflects total compensation.

(3)

Description of Service other than those Set Forth in Article 2, Paragraph 1 of the Certified
Public Accountants Act
The Company entrusts the Accounting Auditor with advisory services which are services other than those
set forth in Article 2, Paragraph 1 of the Certified Public Accountants Act (Non-Audit Service).

(4)

Cash and other profits payable by the Company or its subsidiaries to Accounting Auditor
95 million yen(Note)
Of significant subsidiaries of the Company, Mitsubishi Logistics China Co., Ltd., P.T. Mitsubishi
Logistics Indonesia, and Mitsubishi Logistics Europe B.V. receive audits (limited to stipulations of
the Companies Act and the Financial Instruments and Exchange Act (including laws and regulationsof other countries corresponding to these laws)) from accounting auditors (including entities
possessing qualifications in other countries corresponding to these qualifications) separate from the
Accounting Auditor of the Company.

(5)

Policy Regarding Determination of Termination or Nonreappointment of Accounting Auditor
Aside from termination of the Accounting Auditor by the Board of Corporate Auditors as defined in
Article 340 of the Companies Act, should the Accounting Auditor be deemed unable to execute its duties
properly and the replacement of the Accounting Auditor be deemed necessary, the Company shall submit
the proposal to terminate or not reappoint the Accounting Auditor to the General Meeting of Shareholders,
based on a resolution of the Board of Corporate Auditors.

25

III.
1.

Company’s Systems and Policies
System to ensure that Directors execute their duties in compliance with laws and regulations andthe Articles of Incorporation and other systems to ensure proper business execution
As rules and a charter to be strictly followed by executives and employees during the course of
executing duties, the Company has formulated a “Code of Conduct” as described below, and clearly states
its position to actively work toward thorough compliance with related laws, in addition to environmental
protection and social contribution, etc.
1) The Company will comply with laws and regulations and rules, and execute corporate activities
sincerely and fairly so as not to disrupt societal norms.
2) The Company will disclose corporate information at appropriate times and in an appropriate way, andaim for broad communication with society.
3) The Company will continue to not have any relationships with anti-social forces that have a negative
impact on the order and safety of civil society.
4) The Company will recognize the importance of environmental issues and cooperate withenvironmental protection activities.
5) While providing services that are safe, high quality, and socially effective, the Company will work
toward societal contribution activities as a “good corporate citizen,” placing harmony with regionalsocieties and international society at the forefront.

<Chart of corporate governance system> (As of March 31, 2021)

26

Under this Code of Conduct, the Company has formulated “Basic Policy Regarding Implementationof Internal Control Systems” as described below, in order to ensure the appropriate execution of duties byexecutives and employees and appropriateness of corporate operations.
(1) System to ensure that the Directors execute their duties in compliance with laws and regulations andthe Articles of Incorporation
Important decision-making shall be deliberated upon and resolved at a meeting of the Board of
Directors that is held once per month in principle in accordance with the Regulations on the Board of
Directors, which clarifies agenda standards. Regarding execution of duties, responsibilities for
Directors shall be defined, and each Director shall execute duties concerning their responsibilities, withaccountability pursuant to laws and regulations and the Articles of Incorporation.
Corporate Auditors shall inspect important decision-making documents, attend meetings of theBoard of Directors, the Executive Committee, and General Managers’ meetings, etc. to ascertain thestatus of important decision-making and the execution of duties, and shall provide opinions.
(2) System to ensure that the employees execute their duties in compliance with laws and regulations
and the Articles of Incorporation
While ensuring thorough recognition of the Company’s “Code of Conduct” and internal
regulations, the Internal Audit Department shall audit compliance with laws and regulations and thestatus of the execution of duties based on the annual audit plan, report the results to the responsible
Executive Directors, and the division responsible for compliance shall evaluate the status of
improvement of the audit results.
In order to prevent or promptly discover and correct actions that may infringe upon laws andregulations and the Articles of Incorporation, an Internal Reporting Hotline (Helpline) shall beestablished.
Furthermore, through establishment of the Internal Control Committee and the CSR andCompliance Committee, the implementation status of internal control functions and the complianceconditions shall be evaluated, aiming to enhance the internal controls and CSR compliance.
(3) System for storage and management of information related to the execution of duties of the Directors
Minutes for meetings of the Board of Directors and important documents, etc. regarding theexecution of duties by Directors shall be appropriately stored and managed in accordance with laws
and regulations and internal regulations.
(4) Regulations or any other systems for management of risk of loss
While aiming for thorough compliance with the Basic Risk Management Manual, etc., the Risk
Management Committee shall be established, working toward advance prevention of business risk
and risks related to finance and legal matters, alongside with strengthening measures against natural
disasters. Additionally, if risks arise, “Countermeasure Headquarters” shall be established, andcompanywide support and countermeasures shall be thoroughly implemented, aiming forminimization of losses and early restoration of normal operations.
(5) System to ensure that the execution of duties of the Directors is efficient
Directors shall strictly maintain the efficiency and soundness of management while executing duties
related to their responsibilities according to the management plan.
In addition, all Executive Directors shall deliberate regarding the execution of important duties
based on adequate documentation at the Executive Committee held about once per week (observed
by full-time Corporate Auditors), while making resolutions or reporting on execution status atmeetings of the Board of Directors.
(6) System to ensure proper business execution within the Company group consisting of the Company
and its subsidiaries
・ Executives shall be dispatched from the Company to subsidiaries. In addition to implementationof Codes of Conduct suited for the businesses of subsidiaries, they oversee the duties of Directorsof subsidiaries to be executed efficiently in accordance with the management plan.
・ The execution of important duties at subsidiaries shall be deliberated in advance with the Company
in accordance with the Regulations on Affiliate and Subsidiary Administration, and Executive
Directors in charge shall receive reports from the subsidiaries periodically or as needed regarding
the status of the execution of duties and financial conditions, etc. at subsidiaries.
・ A Group Management Meeting, comprised of the Company and significant subsidiaries, shall be held
about twice per year, ensuring the appropriateness of operations of the overall Group.
27

・ The Internal Audit Department shall audit compliance with laws and regulations and the status of
the execution of duties at subsidiaries and report the results to the Executive Directors in charge.
Corporate Auditors, the Internal Audit Department of the Company and Corporate Auditors of thesubsidiaries shall cooperate and express their opinions regarding the optimization of operations of
the overall Group as necessary.
・ To prevent or promptly discover and correct actions that may infringe upon laws and regulations
and the Articles of Incorporation, subsidiaries shall establish a common Internal Reporting Hotline(Helpline) jointly with the Company.
・ Regarding risk of losses at subsidiaries, in addition to management according to the Basic Risk
Management Manual, etc., subsidiaries shall establish risk management structures according totheir business types.
・ Appropriate structures for internal controls shall be implemented and operated in order to secure
the reliability of financial reporting.
(7) Employees to assist the duties of Corporate Auditors
The Corporate Auditors’ Chamber shall be established as a department to assist the duties ofCorporate Auditors, and dedicated personnel shall be assigned.
(8) Independence of employees to assist the duties of Corporate Auditors from Directors and mattersconcerning effectiveness of instructions toward said employees
By the nature of their post, personnel dedicated to the Corporate Auditors’ Chamber shall work
directly for Corporate Auditors, and deliberation shall be made with the Board of Corporate Auditors
in advance regarding the selection of such personnel, etc.
(9) System for Directors and employees and executives and employees of subsidiaries (including parties
receiving reports from these persons) to report to Corporate Auditors and other systems for reporting
to Corporate Auditors
Directors and employees as well as executives and employees of subsidiaries (including parties
receiving reports from these persons) shall report periodically to Corporate Auditors regarding thestatus of the execution of duties and financial conditions, etc., and the Internal Audit Department
shall report the results of internal audits to Corporate Auditors.
Additionally, Directors and employees as well as executives and employees of subsidiaries(including parties receiving reports from these persons) shall report as required to Corporate Auditors
regarding matters that will have a significant effect on management.
(10) System to ensure that persons reporting to Corporate Auditors do not receive unfavorable treatment
with said report as rationale
Any unfavorable treatment shall not be incurred due to reporting to Corporate Auditors includinginternal reporting.
(11) Policies for processing expenses or liabilities incurred regarding the execution of duties by Corporate
Auditors
Expenses or liabilities incurred regarding the execution of duties by Corporate Auditors shall beprocessed appropriately in accordance with laws and regulations.
(12) Other systems to ensure the effectiveness of audits by Corporate Auditors
Corporate Auditors shall receive periodic reports from the Accounting Auditor regarding thestatus of audits, and shall conduct effective audits through internal audits by the Internal Audit
Department.
During audits, Directors and employees shall cooperate with Corporate Auditors to provide
required information at the appropriate time.
2.

Summary of the operational status of the system in 1. above
Based on the above “Basic Policy Regarding Implementation of Internal Control Systems,” theCompany has established and operated the internal control systems for the Company and subsidiaries.
A summary of the operational status of internal control systems for the fiscal year under review is asfollows.

28

(1) Status of the execution of duties by Directors and employees
・ Meetings of the Board of Directors were held 12 times, and the Board of Directors deliberated
important matters and made resolutions, and Directors in charge provided reports on the status ofexecution of important duties.
・ The Executive Committee, comprised of all Executive Directors chaired by President, was held
about once per week (observed by full-time Corporate Auditors), and deliberated on importantmatters regarding management.
・ In light of deliberations at the Executive Committee, each Executive Director executed duties
responsibly, including measures based on the Medium-term Management Plan (2019-2021),
according to the division of duties.
・ Aside from General Managers of Branches, the General Managers’ Meetings also comprised of
Directors, Corporate Auditors and the General Managers of the Headquarters Department were
held about once per month for a total of 11 times, and the status of the execution of duties werereported and confirmed.
・ The Internal Control Committee, CSR and Compliance Committee and Risk Management
Committee were each held once, and the status of execution of duties companywide was evaluatedfrom the independent viewpoints of each committee. As a measure against COVID-19, theCompany set up a task force headed by the President based on the Basic Risk Management Manual
after consultation with the Risk Management Committee.
・ To ensure thorough dissemination of the Code of Conduct and internal regulations of the Company,
internal training has been conducted, and the status of compliance among executives andemployees has been confirmed through surveys, etc.
・ Minutes for meetings of the Board of Directors and important documents, etc. regarding theexecution of duties by Directors have been managed by each responsible department according to
the number of years required as defined by laws and regulations and internal regulations.
(2) Status of the Corporate Group, composed of the Company and subsidiaries
・ To manage risk of losses arising at the Group, the Company has prepared a Basic Risk Management
Manual, and worked to disseminate it.
・ Executives and employees of the Company are dispatched to subsidiaries and manage them byexecuting their duties and conducting audits and supervision at the subsidiaries.
・ A department to manage subsidiaries were established, and the department discusses the executionof important duties with subsidiaries, receives periodic reports from subsidiaries regarding
financial conditions, etc., and reports to Executive Directors in charge and Corporate Auditors.
Additionally, the Group Management Meeting, comprised of the Company and significant
subsidiaries, was held once, and business results and issues, etc. were reported and confirmed,
including the progress status of measures based on the Medium-term Management Plan (2019–2021).
・ Concerning internal controls regarding financial reporting, effectiveness is evaluated based on the“Internal Control Evaluation Policy Book,” which defines the Group’s systems regarding operationand evaluation, and basic policies such as processes and methods.
(3) Status of Corporate Auditors, internal audits, and internal reporting・ Aside from exchanging information with the Representative Director through periodic meetings,
etc., Corporate Auditors attended important meetings such as meetings of the Board of Directors,
the Executive Committee, and General Managers’ Meetings. In addition to the examination ofimportant documents, etc. regarding the execution of duties by Directors such as decision-making
documents, Corporate Auditors have inspected the Company’s audit and subsidiaries andconducted hearings with the Board of Directors, etc. based on the annual audit plan. Additionally,meetings of the Board of Corporate Auditors were held 16 times, and information on the status of
the Company and audit results, etc. have been shared.
・ During the formulation and implementation, etc. of their respective annual audit plans, Corporate
Auditors, the Internal Audit Department, Accounting Auditor and Corporate Auditors ofsubsidiaries have conducted periodic meetings and exchanged information as needed, executing
duties effectively and efficiently.
・ To support the execution of duties of Corporate Auditors, a Corporate Auditors’ Chamber (onededicated employee) was established at the headquarters. The dedicated staff member executed
duties under the direction of Corporate Auditors, and matters concerning related personnel, etc.
were deliberated with the Board of Corporate Auditors in advance.
・ Expenses or liabilities that arose during the course of the execution of duties of Corporate Auditors
were appropriately processed in accordance with laws and regulations upon request from Corporate
29

Auditors.
・ Aside from establishing an Internal Audit Division (seven dedicated employees) at the headquarters
as the Internal Audit Department, audit support employees (two persons) were assigned, andauditors (one each) and audit support employees (two each) were assigned at each branch. Audits
were conducted at the Company and Group companies based on the annual audit plan. Audit results
were reported to Executive Directors in charge and Corporate Auditors, and the division
responsible for compliance evaluated the status of improvement on a quarterly basis.
・ Including the Corporate Auditors’ Chamber, multiple common Internal Reporting Hotlines were
established in the Group, and internal regulations stipulated the prohibition of unfavorable
treatment to the person who made an internal report.
3.

Basic policy regarding the Company’s control
The Group’s primary businesses are the Logistics Business with Warehousing & Distribution Businessat its core, and the Real Estate Business, which focuses on the leasing of buildings.
Regarding the Logistics Business, the Group aims to organically and comprehensively operate eachof the Overland Transportation, International Transportation and Harbor Transportation businesses
centered on the Warehousing & Distribution Business by using information technologies. In the Real
Estate Business, the Group aims to expand the leasing business primarily in office buildings andcommercial facilities by effectively using the Group’s proprietary lands. Through fair operations of thesebusinesses, the Group aims to ensure appropriate profits and stable growth, and provide returns toshareholders and employees, making contribution to realizing a prosperous society.
Due to the nature of both businesses that needs land, building and facilities, etc. in favorable locations,both businesses require significant investment; therefore, the Company invests its management resources
including funds in a continuous and planned manner from a long-term standpoint with the aim of
expanding and developing businesses.

Although the Company does not unconditionally deny all intension of large-scale acquisition of theCompany’s shares, the Company believes that purchases in conflict with the above that damage corporate
value or common interests of shareholders are inappropriate.
Currently, the Company has not recognized any parties that are attempting large-scale acquisitions of
the Company’s share. However, the Company constantly monitors the trading status of the Company’s
shares, and in the event that a party attempting a large-scale acquisition of the Company’s shares inconflict with these views appears, and if the purchase will not contribute to the Company’s corporate
value and common interests of shareholders, appropriate countermeasures will be considered, and theCompany will prepare a system for the swift implementation of the countermeasures.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Unless otherwise stated, the content of the above report adheres to the following.
1. Monetary amounts and share numbers are rounded down.
2. Ratios are rounded to the first decimal place.
3. If the number of shares or ratio is zero, it is presented as “-.”30Consolidated Balance Sheet(As of March 31, 2021)
Description

Amount(Assets)
Current assets

Description(Millions of yen)Amount(Liabilities)
125,258

Cash and deposits

59,883

Notes and accounts receivable

36,959Marketable securities

Current liabilities

79,491
21,0942,000

Notes and accounts payable
Short-term bank loans and current
maturities of long-term debt
Current portion of bonds

Real estate held for sale

15,151

Income taxes payable

4,744

Other

11,297

Provision for directors’ bonuses

Allowance for doubtful accounts

(33)

Other

36,0855,000
45
12,521

Non-current assets

410,503

Long-term liabilities

129,440

Property and equipment

254,428

Bonds payable

41,000

Buildings and structures

134,671

Long-term loans payable

25,268

Machinery and equipment

4,354

Deposits on long-term leases

21,91631,802

7,626

Deferred income tax liabilities
Provision for directors’ retirement
benefits
Net defined benefit liability

Intangible assets

13,486

Other

1,046

Leasehold right

7,727

Total liabilities

Land
Construction in progress
Other

107,449
325

116
8,289
208,932

Goodwill

145

Other

5,613

Shareholders’ equity

264,546

Investments and other assets

142,588

Common stock

22,393

Investments in securities

132,203

Capital surplus

19,595Retained earnings

238,349

Long-term loans receivable

357

Deferred income tax assets

2,977

Other

7,117

Allowance for doubtful accounts(16)

Allowance for investment loss

(52)

Total assets(Net assets)

Treasury shares
Accumulated other comprehensive
incomeNet unrealized holding gains on
securities
Foreign currency translation
adjustments
Remeasurements of defined benefit
plans
Non-controlling interests

535,761(15,792)
59,04958,630
(149)
569
3,234

Total net assets

326,829

Total liabilities and net assets

535,761(Figures are rounded down to the nearest million yen.)31

Consolidated Statement of Income(April 1, 2020 - March 31, 2021)(Millions of yen)
Description

Breakdown

Revenue
Warehousing fee income
Stevedoring income
Land transportation income
Harbor stevedoring income
International transportation income
Rent of real estate for investment
Other
Cost of services
Operational and transportation consignment costs
Personnel expenses
Facility rental expenses
Depreciation and amortization
Other
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Equity in earnings of unconsolidated subsidiaries andaffiliates
Other
Non-operating expenses
Interest expense
Foreign exchange losses
Other
Ordinary income
Extraordinary income
Gain on disposal of non-current assets
Gain on sale of marketable securities andinvestments in securities
Indemnity income of exiting facilities for lease
Compensation income
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss on valuation of marketable securities andinvestments in securities
Loss on temporary closure
Loss on closure of business facilities
Profit before income taxes
Income taxes - current
Income taxes - deferred
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Amount27,897
17,293
48,213
16,246
46,402
31,297
26,37988,281
37,561
10,15814,403
41,470213,729

191,875
21,854
10,118
11,735

3,324
1,458
530
568
353
112

5,312

1,034
16,01319,1964,304
51
18,78342,334

1,334
81
362
381
77
7,247
9,466

2,236
56,111
16,71439,397237
39,160(Figures are rounded down to the nearest million yen.)32

Consolidated Statement of Changes in Net Assets(April 1, 2020 - March 31, 2021)(Millions of yen)
Shareholders’ equity

Balance as of April 1, 2020

Common stock

Capital surplus

22,393

19,587Retained earnings Treasury shares
204,319

Total
shareholders’equity(5,847)240,453

Changes of items during period
Cash dividends(5,130)(5,130)

Profit attributable to owners ofparent39,16039,160Purchase of treasury shares
Disposal of treasury shares(4)

Change in ownership interest ofparent due to transactions with
non-controlling interests
Changes other than to shareholders’equity, net(10,002)

57

53

11

Total changes of items during period
Balance as of March 31, 2021

(10,002)

11-

7

34,029(9,944)24,092

22,393

19,595

238,349(15,792)

264,546

Accumulated other comprehensive income
Net unrealized Foreign currency Remeasurements
translation
holding gains onof definedadjustments
securities
benefit plan

Balance as of April 1, 2020

43,252

389(754)

Total accumulated Non-controlling
otherinterests
comprehensive
income42,887

3,015

Total
net assets

286,356

Changes of items during period
Cash dividends(5,130)

Profit attributable to owners ofparent39,160Purchase of treasury shares(10,002)

Disposal of treasury shares

53

Change in ownership interest ofparent due to transactions with
non-controlling interests
Changes other than to shareholders’equity, net

1115,377

(539)

1,324

16,162

218

16,380Total changes of items during period

15,377

(539)

1,324

16,162

218

40,473

Balance as of March 31, 2021

58,630(149)

569

59,0493,234

326,829(Figures are rounded down to the nearest million yen.)33

Notes to the Consolidated Financial Statements
Notes to the Basis for Preparation of Consolidated Financial Statements
1. Scope of consolidation(1) Consolidated subsidiaries
Number of consolidated subsidiaries
50
Names of principal subsidiaries
Fuji Logistics Co., Ltd., Ryoso Transportation Co., Ltd., Dia Buil-Tech Co., Ltd., Shinryo Koun Co., Ltd.,
Mitsubishi Logistics China Co., Ltd., P.T. Mitsubishi Logistics Indonesia, Mitsubishi Logistics America
Corporation and Mitsubishi Logistics Europe B.V.
Former consolidated subsidiary Nagoya Dia Buil-Tech Co., Ltd. has been excluded from the scope of
consolidation because it has been dissolved via an absorption-type merger with Dia Buil-Tech Co., Ltd. as
the surviving company.
(2) Non-consolidated subsidiaries
Names of principal non-consolidated subsidiary
Dia Logistics (M) Sdn. Bhd.
Non-consolidated subsidiaries are respectively small in scale, and the totals of total assets, revenue, profit
attributable to owners of parent (proportional amount of equity), and retained earnings (proportionalamount of equity), etc., each do not have a significant effect on the consolidated financial statements, thus
these subsidiaries are excluded from the scope of consolidation.
2. Application of the equity method(1) Non-consolidated subsidiaries and affiliates accounted for by the equity method
There are no non-consolidated subsidiaries accounted for by the equity method.
Number of affiliates subject to the equity method
3Name of principal affiliate
MY Terminals Holdings, Limited, Kusatsu Soko Co., Ltd.
(2) Non-consolidated subsidiaries and affiliates not subject to the equity method
Name of principal non-consolidated subsidiary
Dia Logistics (M) Sdn. Bhd.
Name of principal affiliate
Nakatani Transportation Co., Ltd.
As non-consolidated subsidiaries and affiliates not subject to the equity method each of these companies has
only an immaterial effect on profit attributable to owners of parent and retained earnings, etc. and isinsignificant overall, these are excluded from application of the equity method.
3. Matters concerning the fiscal year, etc., of consolidated subsidiaries
All consolidated subsidiaries excluding 18 overseas subsidiaries such as Mitsubishi Logistics America
Corporation end their fiscal years on the same day as the Company.
The last day of the fiscal year for 18 overseas subsidiaries such as Mitsubishi Logistics America
Corporation is December 31. The financial statements as of December 31 are used in the consolidated
financial statements, and if any material transactions incur during the period from December 31 to March 31,
necessary adjustments are made on the consolidated financial statements.
4. Matters concerning accounting policies(1) Standards and methods for valuation of important assets
A. Securities
Available-for-sale securities
Securities with market quotations
Stated at market based on the market price, etc. on the balance sheet date.
(Valuation difference is transferred directly to net assets. The cost of sales is calculated using
the moving average method.)34

Securities without market quotations
Stated at cost using the moving-average method.
B. Derivatives
Stated using the market value method.
C. Inventories (real estate held for sale)
Mainly stated at cost using the specific identification method.
(calculated by writing them down based on decline in profitability.)(2) Depreciation and amortization method for important depreciable or amortizable assets
A. Property and equipment (excluding leased assets)
The declining-balance method is applied.
Warehouse facilities (actual buildings), commercial facilities for lease (actual buildings) and facilities
and structures attached to buildings acquired on or after April 1, 2016 are calculated using the straightline method.
Furthermore, useful lives are estimated according to stipulations of the Corporation Tax Act, and lives
for commercial facilities for lease (actual buildings) are determined with a standard of 20 years, taking
into account the lease agreement period, etc.
B. Intangible assets (excluding leased assets)
The straight-line method is applied.
Computer software for internal use is amortized over the estimated internal useful life (5 to 10 years)
using the straight-line method.
C. Leased assets(Leased assets relating to finance lease transactions without the transfer of ownership)
Leased assets are depreciated using the straight-line method with no residual value over the lease termof the leased assets.
(3) Important standards of accounting for reserves
A.

Allowance for doubtful accounts
To provide for losses resulting from unrecoverable claims such as accounts and loans receivable,
allowance for doubtful accounts is recorded based on the historical write-off rate for ordinary
receivables, and based on expected uncollectable accounts individually for receivables.

B.

Allowance for investment loss
To provide for losses resulting from a decline in the substantial price of stock and investment withoutmarket value, allowance is recorded taking into account the possibility of recovery if total net assetsof the issuing company fall below the book value.

C.

Provision for directors’ bonuses
To provide for bonuses to Directors, of estimated payment amount, amounts to be borne during the
fiscal year under review are recorded.

D.

Provision for directors’ retirement benefits
To provide for payments of retirement benefits for directors at certain consolidated subsidiaries,
amounts to be paid at the end of the fiscal year under review are recorded, based on entity's rules.

(4) Accounting treatment of retirement benefits
A. Method of attributing the estimated benefit obligation to periods
Upon calculating the retirement benefit obligation, the estimated benefit obligation is attributed to theperiod up until the fiscal year under review on a benefit formula basis.
B. Amortization method of actuarial calculation differences and prior service costs
Actuarial calculation differences are amortized using the straight-line method over a certain period (5to 15 years) within the average remaining years of service of employees, beginning from the fiscal
35

year following the incurred year. Prior service costs are recognized using the straight-line method
over a certain period (15 years) within the average remaining years of service of employees, beginningfrom the incurred year.
(5) Amortization method and amortization period of goodwill
Goodwill is amortized over 5 to 10 years on a straight-line basis. Any immaterial amounts are fullyrecognized as expenses as incurred.
(6) Accounting treatment of consumption taxes, etc.
For accounting treatment of consumption tax and local consumption tax, the tax exclusion method isapplied.
Changes in presentation methods(Changes associated with application of “Accounting Standard for Disclosure of Accounting Estimates”)
The “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No. 31, March 31, 2020)
has been applied from the consolidated financial statements relating to the end of the fiscal year under review.
“Notes to accounting estimates” is provided in the Notes to the Consolidated Financial Statements.
Notes to accounting estimates
The Company made accounting estimates at reasonable amounts calculated based on the information available
at the time of preparing the consolidated financial statements.
Items of accounting estimates recorded in the consolidated financial statements for the current fiscal year thathave the risk of significantly impacting the consolidated financial statements for the following fiscal year are as
follows.
Decision on recognition of impairment loss of non-current assets
1. Amount recognized in the consolidated financial statements for the fiscal year under review
Impairment loss is not recognized for one asset group location (total book value: 4,451 million yen) whichshowed indications of impairment due to a fall in fair value of land and buildings, etc., because theCompany verified the necessity of recognizing impairment using value in use, and determined that theundiscounted future cash flows based on the business plan exceeds the book value of the non-current assetsof the asset group.
2. Other information relating to accounting estimates that will facilitate the understanding of the users of theconsolidated financial statements
In principle, the Group classifies assets mainly into groups based on profit centers (units for calculating
profit/loss such as office locations and facilities).
In the event that an asset group shows indications of impairment due to factors such as a fall in the fairvalue of land and buildings, etc. and reduced profitability, the Company determines whether to recognize
impairment loss by comparing the undiscounted future cash flows from the asset group and its book value.
As a result, if it is deemed necessary to recognize impairment loss because the undiscounted future cash
flows fell below book value, the book value is reduced to the recoverable amount (the higher of net selling
price or value in use) and the reduction amount of such book value is recorded as impairment loss.
While estimates of future cash flows from such asset groups are based on factors such as results of previous
fiscal years, they mainly assume the recording of stable revenue, future repair plans, and the expected future
use of major assets, which naturally involve uncertainties. Depending on future situations, estimates of
future cash flows may be significantly affected.

36

Notes to Consolidated Balance Sheet
1. Accumulated depreciation of property and equipment
2. Accumulated deferred tax reserves for non-current assets

319,334 million yen
3,219 million yen

3. Collateral assets
Assets pledged as collateralLand

744 million yen

Obligations related to the above
Short-term bank loans

150 million yen“Other” of current liabilities

128 million yen

Long-term loans payable

421 million yen

Deposits on long-term leases

1,000 million yen

4. Guarantee liability
Liability guarantees for borrowings of other companies

748 million yen

Notes to Consolidated Statements of Income
1. Impairment loss
The Group recognized impairment loss in the following asset group for the fiscal year under review:
Location
Use
Type
Amount (million yen)
Buildings, machineryContainer terminal
Kobe City, Hyogoand equipment, and29
facilities
othersReal estate rental
Kasuya-gun, Fukuoka
Buildings
51
facilities
In calculating impairment loss, assets are grouped by the lowest level that generates a cash flow independent
from other assets or asset groups.
The above asset groups have been recognized to have reduced profitability from operating activities, and as
short-term recovery is not expected, book values for assets related to said asset groups have been reduced to
the recoverable amounts, and the reduction amount of 81 million yen (59 million yen in buildings, 15 million
yen in machinery and equipment and 6 million yen in others) has been recorded as impairment loss in
extraordinary losses.
The recoverable amounts are measured based on net selling price or value in use. Net selling prices are derived
from estimated disposal prices and value in use is considered to be zero since future cash flow cannot be
expected.
2. Gain on disposal of non-current assets
This is due primarily to the partial transfer of a site for the Company’s Real Estate Business around Nagoya
Station.
3. Compensation income
This is due primarily to compensation for transfer of the Company’s rental facilities around Nagoya Station.

37

Notes to Consolidated Statement of Changes in Net Assets
1. Type and number of shares issued
Total number of shares issued as of March 31, 2021: Common stock

87,960,739 shares

2. Dividends(1) Dividend amountResolution
General Meeting of
Shareholders on
June 26, 2020
Meeting of theBoard of Directors
on October 30,
2020

Type ofstock

Total dividends(million yen)

Dividend pershare (yen)Record date

Effective dateCommon
stock

2,578

30

March 31,2020

June 29, 2020

Common
stock

2,552

30

September 30,
2020

December 1,
2020(2) Dividends whose record date is during this fiscal year, but whose effective date is after the end of thisfiscal year
The following items are proposed at the General Meeting of Shareholders to be held on June 29, 2021.
A. Total dividends

2,480 million yen

B. Source of dividends

Retained earnings

C. Dividend per share

30 yenD. Record date

March 31, 2021

E. Effective dateJune 30, 2021

38

Notes to Financial Instruments
1. Status of Financial Instruments
The Group raises necessary funds mainly by bank loans or issuance of bonds. Temporary cash surplus, if any,
are invested in highly secured deposits, public bonds and corporate bonds, etc.
Notes and accounts receivable are exposed to credit risk of customers. In order to reduce such credit risk, theGroup controls on due date and balance for each customer in accordance with internal customer credit
management rules.
Investments in securities are mainly stocks issued by companies with which the Group has business relations.
The Group ascertains the fair values of such stocks at regular intervals.
Short-term loans are used mainly for operating capital, while long-term loans payable are used mainly forcapital expenditure. Interest rate swap contracts may be used as a hedging instrument for long-term loans
payable with floating interest rates in order to avoid interest rate fluctuation risk. Derivatives are used basedon actual demand only.
2. Current Value, etc. of Financial Instruments
The amounts posted on the consolidated balance sheet, the fair values, and the differences thereof as of March
31, 2021 are as follows. Items whose fair values are extremely difficult to measure are not included in thefollowing table (please see (Note 2)).
(Millions of yen)
Consolidated balance
Fair value
Difference
sheet amount(1) Cash and deposits
59,88359,883(2) Notes and accounts receivable
36,95936,959(3) Marketable securities
2,000
2,000
(4) Investments in securities
108,069
108,069
Available for-sale securities
Total assets
206,912206,912(1) Notes and accounts payable
21,09421,094(2) Short-term bank loans
35,24635,246(3) Bonds payable (*1)
46,00045,629(370)(4) Long-term loans payable (*2)
26,107
26,215107(5) Deposits on long-term leases
1,165
1,169
4
Total liabilities
129,613
129,355(258)(*1) Including current portion of bonds.
(*2) Including current maturities of long-term debt.

(Note 1) Calculation method of the fair value of financial instruments and securities
Assets(1) Cash and deposits, (2) Notes and accounts receivable, (3) Marketable securities:
Relevant consolidated balance sheet amounts are used because the settlement term of the above items is shortand their fair values approximate their book values.
(4) Available for-sale securities in investments in securities:
The fair values of stocks are determined using the quoted price at the stock exchange.
Liabilities(1) Notes and accounts payable, (2) Short-term bank loans
Relevant consolidated balance sheet amounts are used because the settlement term of the above items is shortand their fair values approximate their book values.
(3) Bonds payable
The fair values of bonds issued by the Company are calculated using the market price.

39

(4) Long-term loans payable
Long-term loans payable with floating interest rates require that the interest rates be amended at certain periodsof time. Therefore, relevant book values are used because their fair values approximate their book values. Longterm loans payable with fixed interest rates are calculated using the present value of the amount of principal andinterest discounted using the current borrowing rate for similar loans of comparable maturity.
(5) Deposits on long-term leases
Deposits on long-term leases are calculated by the present value of future cash flows discounted using a riskfree rate.
(Note 2) Unlisted securities and others (consolidated balance sheet amount of 24,134 million yen) are not includedin “(4) Available for-sale securities in investment in securities,” because the identification of their fairvalues is deemed extremely difficult due to the absence of market values and inability to estimate future
cash flows. Of deposits on long-term leases, those with future cash flows that cannot be estimated andwith fair values which are extremely difficult to measure (consolidated balance sheet amount of 20,751
million yen) are not included in “(5) Deposits on long-term leases.”

Notes to Real Estates for Rent
The Company and some of its subsidiaries have some investments and rental property such as office buildings
for rent (including land) in Tokyo and other regions.
(Millions of yen)Amount on the consolidated balance sheet
Fair value
112,290371,219(Note 1) The amount on the consolidated balance sheet is the amount obtained by deducting accumulated depreciation fromacquisition cost.
(Note 2) Fair value as of March 31, 2021 was the amount mainly based on appraisal by an external real estate appraiser.

Notes to Per Share Information
1. Net assets per share
2. Basic earnings per share

3,914.63 yen
462.28 yen

Notes to Significant Subsequent Events
At the meeting of the Board of Directors held on April 30, 2021, the Company resolved matters relating to
the purchase of treasury shares pursuant to the provisions of Article 156 of the Companies Act, which areapplied by replacing certain terms pursuant to the provisions of Article 165 Paragraph 3 of the Companies
Act.
1. Reasons for purchasing of treasury shares
In order to further improve shareholder returns, the Company will flexibly purchase treasury shares.
2. Details of the matters concerning purchase(1) Type of shares to be purchased
Common stock of the Company(2) Total number of shares to be purchased 2,000,000 shares (maximum)(Ratio to the total number of shares issued (excluding treasury shares): 2.4%)(3) Total purchase price of shares
5,000 million yen (maximum)(4) Purchase period
May 6, 2021 – September 30, 2021
(5) Purchase method
Market purchase on the Tokyo Stock Exchange

40

Non-consolidated Balance Sheet(As of March 31, 2021)
Description(Assets)
Current assets
Cash and deposits
Notes receivable
Accounts receivable
Marketable securities
Real estate held for sale
Prepaid expenses
Short-term loans receivable
Advances paid
Other
Allowance for doubtful accounts
Non-current assets
Property and equipment
Buildings
Structures
Machinery and equipment
Transportation equipment
Tools, furniture and fixtures
Land
Leased assets
Construction in progress
Intangible assets
Leasehold right
Software
Other
Investments and other assets
Investments in securities
Investments in capital ofsubsidiaries and affiliates
Long-term loans receivable
Guarantee deposits
Other
Allowance for doubtful accounts
Allowance for investment loss

Total assets(Millions of yen)AmountAmountDescription(Liabilities)
86,421
Current liabilities
69,117
37,161
Accounts payable
13,884
Short-term bank loans and223
current maturities of long36,748
term debt
23,712Current portion of bonds
5,000
2,000
Accounts payable - other
4,233
15,151
Income taxes payable
4,341
713
Advances received
2,440
322
Deposits received
1,412
Provision for directors’
1,796
45
bonuses
5,354
Other
1,012
(14)
Long-term liabilities
115,550
Bonds payable
41,000Long-term loans payable
22,724397,495
Deposits on long-term leases
20,307226,058
119,810Deferred income tax liabilities
29,382
2,864
Retirement benefits
2,135
3,139
Total liabilities
184,667
116(Net assets)
1,726
Shareholders’ equity
241,442
94,974
Common stock
22,393
3,114
Capital surplus
19,383
312
Legal capital surplus
19,383
Other capital surplus
011,4807,670
Retained earnings
215,4213,618
Legal retained earnings
3,121
191
Other retained earnings
212,300
Reserve for private
8,128
159,955
insurance
108,424
Reserve for reduction entry
27,329Reserve for property
43,986
11,257
replacement
Reserve for special
4,846
113
depreciation
4,227
General reserve
138,240
Retained earnings brought
411
27,232
forward(16)
Treasury shares(15,756)
Valuation and translation(1,924)57,806
adjustments
Net unrealized holding gains
57,806
on securities
Total net assets
299,249
483,917
Total liabilities and net assets
483,917(Figures are rounded down to the nearest million yen.)41

Non-consolidated Statement of Income(April 1, 2020 - March 31, 2021)(Millions of yen)
Description

BreakdownAmountRevenue
Warehousing fee income

19,785

Stevedoring income

9,787Land transportation income

26,446

Harbor stevedoring income

14,660International transportation income

31,576

Rent of real estate for investment

29,585

Other

19,712

151,553

Cost of services
Operational and transportation consignment costs

70,203

Personnel expenses

13,857

Facility rental expenses

7,193

Depreciation and amortization

11,297

Other

34,223Gross profit

136,775
14,777

Selling, general and administrative expenses

5,401

Operating income

9,376

Non-operating income
Interest and dividend income

4,923

Other

274

5,198

Non-operating expenses
Interest expense

457

Other

152

Ordinary income

610
13,964Extraordinary income
Gain on disposal of non-current assets
Gain on sale of marketable securities andinvestments in securities
Reversal of allowance for investment loss

19,134
4,297
404

Indemnity income of exiting facilities for lease

26

Compensation income

18,46342,326Extraordinary losses
Loss on disposal of non-current assets

924

Impairment loss
Loss on valuation of marketable securities andinvestments in securities
Loss on temporary closure
Income before income taxes

81
361
256

1,623
54,667

Income taxes - current

6,475

Income taxes - deferred
Net income

9,618

16,094
38,573(Figures are rounded down to the nearest million yen.)42

Non-consolidated Statement of Changes in Net Assets(April 1, 2020 - March 31, 2021)(Millions of yen)

Shareholders’ equity
Capital surplus
Commonstock

Balance as of April 1, 2020
Changes of items during
periodCash dividends
Net income
Provision of reserve forprivate insurance
Reversal of reserve for
reduction entry
Provision of reserve for
reduction entry
Provision of reserve forproperty replacement
Reversal of reserve for
special depreciation
Provision of reserve for
special depreciation
Purchase of treasury
shares
Disposal of treasury
sharesChanges other than toshareholders’ equity,net
Total changes of items
during the period
Balance as of March 31,
2021

22,393

Legal capitalsurplus

Other capitalsurplus19,383

4

Legalretainedearnings
3,121

Retained earnings
Other retained earnings
Reserve
Reserve forReserve for
for
privateproperty
reduction
insurance
replacement
entry
7,928
15,558-200(96)
11,867
11,257

(4)

-

-

(4)

-

200

11,770

11,25722,393

19,383

0

3,121

8,128

27,32911,257(Figures are rounded down to the nearest million yen.)43

Valuation andtranslation
adjustments

Shareholders’ equity
Retained earnings
Other retained earnings
Retained
Reserve forGeneralearnings brought
specialreserveforwarddepreciation
Balance as of April 1, 2020

160

138,240

16,971

Total
shareholders' Net unrealized
holding gains
equityon securities

Treasuryshares(5,811)217,948

42,736Total
net assets

260,685

Changes of items during
periodCash dividends(5,130)(5,130)(5,130)Net income

38,57338,57338,573

(200)

-

-

96

-

-

(11,867)--(11,257)

-

-

(72)

72

-

-

25

(25)

-

-

(10,002)(10,002)(10,002)

57

53

53

Provision of reserve forprivate insurance
Reversal of reserve for
reduction entry
Provision of reserve for
reduction entry
Provision of reserve forproperty replacement
Reversal of reserve for
special depreciation
Provision of reserve for
special depreciation
Purchase of treasury
shares
Disposal of treasury
sharesChanges other than toshareholders’ equity,net
Total changes of items
during the period
Balance as of March 31,
2021

15,07015,070(46)-

10,260(9,944)23,493

15,07038,563

113

138,240

27,232(15,756)

241,442

57,806299,249(Figures are rounded down to the nearest million yen.)44

Notes to the Non-consolidated Financial Statements
Notes to Significant Accounting Policies
1. Standards and methods of valuation of securities(1) Stocks of subsidiaries and affiliates
Stated at cost using the moving-average method.
(2) Available-for-sale securities
Securities with market quotations
Stated at market based on the market price, etc. on the balance sheet date. (Valuation difference istransferred directly to net assets. The cost of sales is calculated using the moving average method.)
Securities without market quotations
Stated at cost using the moving-average method.
2. Standards and methods of valuation of derivatives
Stated using the market value method.
3. Standards and methods of valuation of inventories
Valuation for real estate held for sale is recorded using the cost accounting method (method to reduce bookvalues based on declines in profitability) on an individual basis.
4. Depreciation and amortization method for non-current assets(1) Property and equipment (excluding leased assets)
The declining-balance method is applied.
Warehouse facilities (actual buildings), commercial facilities for lease (actual buildings) and facilities
and structures attached to buildings acquired on or after April 1, 2016 are calculated using the straightline method.
Furthermore, useful lives are estimated according to stipulations of the Corporation Tax Act, andcommercial facilities for lease (actual buildings) are determined with a standard of 20 years, withadjustments made for factors such as the lease agreement period, etc.
(2) Intangible assets (excluding leased assets)
The straight-line method is applied.
Computer software for internal use is amortized over the estimated internal useful life (5 to 10 years)
using the straight-line method.
(3) Leased assets
Leased assets relating to finance lease transactions without the transfer of ownership.
Leased assets are depreciated using the straight-line method with no residual value over the lease termof the leased assets.
5. Standards of accounting for reserves
Allowance for doubtful accounts
To provide for losses resulting from unrecoverable claims such as accounts and loans receivable,
allowance for doubtful accounts is recorded based on the historical write-off rate for ordinary
receivables, and based on expected uncollectable amounts individually for receivables.
Allowance for investment loss
To provide for losses resulting from a decline in the substantial price of stock and investment withoutmarket value, allowance is recorded taking into account the possibility of recovery if total net assetsof the issuing company fall below the book value.
Provision for directors’ bonuses
To provide for bonuses to Directors, of estimated payment amount, amounts to be borne during the
fiscal year under review are recorded.
45

Provision for retirement benefits
Provision for retirement benefits is provided based on the estimated benefit obligation and pension
assets as of March 31, 2021.
1) Method of attributing the estimated benefit obligation to periods
Upon calculating the retirement benefit obligation, the estimated benefit obligation is attributed to theperiod up until the fiscal year under review on a benefit formula basis.
2) Amortization method of actuarial calculation differences
Actuarial calculation differences are amortized using the straight-line method over a certain period (5years) within the average remaining years of service of employees, beginning from the fiscal year
following the incurred year.
3) Accounting treatment of retirement benefits
The method of accounting treatment of unrecognized actuarial calculation differences on retirement
benefits differs from the method of accounting for these in the consolidated financial statements.
6. Accounting treatment of consumption taxes, etc.
For accounting treatment of consumption tax and local consumption tax, the tax exclusion method isapplied.
Changes in presentation methods(Changes associated with application of “Accounting Standard for Disclosure of Accounting Estimates”)
The “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No. 31, March 31,2020) has been applied from the non-consolidated financial statements relating to the end of the fiscal year
under review. “Notes to accounting estimates” is provided in the Notes to the Non-consolidated Financial
Statements.
Notes to accounting estimates
The Company made accounting estimates at reasonable amounts calculated based on the information available
at the time of preparing the non-consolidated financial statements.
Items of accounting estimates recorded in the non-consolidated financial statements for the current fiscal yearthat have the risk of significantly impacting the non-consolidated financial statements for the following fiscal
year are as follows.
Decision on recognition of impairment loss of non-current assets
1. Amount recognized in the non-consolidated financial statements for the fiscal year under review
Impairment loss is not recognized for one asset group location (total book value: 4,451 million yen) whichshowed indications of impairment due to a fall in fair value of land and buildings, etc., because theCompany verified the necessity of recognizing impairment using value in use, and determined that theundiscounted future cash flows based on the business plan exceeds the book value of the non-current
assets of the asset group.
2. Other information relating to accounting estimates that will facilitate the understanding of the users of
the non-consolidated financial statements
Please refer to “Notes to the Consolidated Financial Statements, (Notes to accounting estimates)”presented above.

46

Notes to Non-Consolidated Balance Sheet
1. Monetary receivables from and payables to affiliates
2,249 million yen
Short-term monetary asset
Short-term monetary liability 8,749 million yen

Long-term monetary asset
Long-term monetaryliability

2. Accumulated depreciation of property and equipment

5,102 million yen
657 million yen

282,406 million yen

3. Accumulated deferred tax reserves for non-current assets

3,219 million yen

4. Collateral assets
Assets pledged as collateral
Land
Obligations related to the above
Short-term bank loans
Long-term loans payable

744 million yen
150 million yen
421 million yen

Advances received
Long-term deposits
received

128 million yen
1,000 million yen

5. Guarantee liability
Liability guarantees for borrowings of other companies

768 million yen

Notes to Non-consolidated Statement of Income
1. Transactions with affiliates
Operating transactions
Revenue
Transactions other than operating transactions

9,858 million yen
2,495 million yen

Cost

45,698 million yen

2. Gain on disposal of non-current assets
This is due primarily to the partial transfer of a site for the Company’s Real Estate Business around Nagoya
Station.
3. Compensation income
This is due primarily to compensation for transfer of the Company’s rental facilities around Nagoya Station.
Notes to Non-consolidated Statement of Changes in Net Assets
Number of treasury shares as of March 31, 2021
Common stock

5,263,066 shares

47

Notes to Tax Effect Accounting
Major factors for deferred tax assets and liabilities[Deferred income tax assets]
Enterprise taxes payable
Allowance for investment loss
Accrued bonuses
Retirement benefits
Depreciation
Impairment loss
Other
Total deferred income tax assets[Deferred income tax liabilities]
Net unrealized holding gains on securities
Reserve for reduction entry
Reserve for property replacement
Reserve for special depreciation
Total deferred income tax liabilities
Net deferred income tax liabilities

279 million yen
588 million yen
429 million yen
653 million yen
6,685 million yen
2,080 million yen
2,150 million yen
12,868 million yen(25,188) million yen(12,050) million yen(4,963) million yen(49) million yen(42,251) million yen(29,382) million yen

Notes to Per Share Information
1. Net assets per share

3,618.59 yen

2. Basic earnings per share 455.16 yen
Notes to Significant Subsequent Events
At the meeting of the Board of Directors held on April 30, 2021, the Company resolved matters relating to
the purchase of treasury shares pursuant to the provisions of Article 156 of the Companies Act, which areapplied by replacing certain terms pursuant to the provisions of Article 165 Paragraph 3 of the Companies
Act.
1. Reasons for purchasing of treasury shares
In order to further improve shareholder returns, the Company will flexibly purchase treasury shares.
2. Details of the matters concerning purchase(1) Type of shares to be purchased
Common stock of the Company(2) Total number of shares to be purchased 2,000,000 shares (maximum)(Ratio to the total number of shares issued (excluding treasury shares): 2.4%)(3) Total purchase price of shares
5,000 million yen (maximum)(4) Purchase period
May 6, 2021 – September 30, 2021
(5) Purchase method
Market purchase on the Tokyo Stock Exchange

48Independent Auditor’s Report
To the Board of Directors of Mitsubishi Logistics Corporation:
OpinionWe have audited the consolidated financial statements, which comprise the consolidated balance sheet,the consolidated statement of income, the consolidated statement of changes in net assets and the related
notes of Mitsubishi Logistics Corporation (“the Company”) and its consolidated subsidiaries (collectively
referred to as “the Group”), as at March 31, 2021 and for the year from April 1, 2020 to March 31, 2021
in accordance with Article 444-4 of the Companies Act.
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position and the results of operations of the Group for the period, forwhich the consolidated financial statements were prepared, in accordance with accounting principles
generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Auditof the Consolidated Financial Statements section of our report. We are independent of the Group inaccordance with the ethical requirements that are relevant to our audit of the consolidated financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Responsibilities of Management and Corporate Auditors and the Board of Corporate Auditors for
the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in Japan, and for such internal
control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern inaccordance with accounting principles generally accepted in Japan and using the going concern basis ofaccounting unless management either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Corporate auditors and the board of corporate auditors are responsible for overseeing the directors’
performance of their duties with regard to the design, implementation and maintenance of the Group’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with auditing standards generally accepted in Japan will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control.
Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, while the objective of the audit is not to express an opinion
on the effectiveness of the Group’s internal control.
49Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting andbased on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Group to cease
to continue as a going concern.

Evaluate whether the presentation and disclosures in the consolidated financial statements are inaccordance with accounting standards generally accepted in Japan, the overall presentation, structure
and content of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for our audit opinion.
We communicate with corporate auditors and the board of corporate auditors regarding, among othermatters, the planned scope and timing of the audit, significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide corporate auditors and the board of corporate auditors with a statement that we havecomplied with relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and whereapplicable, related safeguards.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
We do not have any interest in the Group which is required to be disclosed pursuant to the provisions of
the Certified Public Accountants Act of Japan.
Atsuki Kanezuka
Designated Engagement Partner
Certified Public Accountant
Taro Nakamura
Designated Engagement Partner
Certified Public Accountant
Masaya Ariyoshi
Designated Engagement Partner
Certified Public Accountant
KPMG AZSA LLC
Tokyo Office, Japan
April 30, 2021

50

Independent Auditor’s Report
To the Board of Directors of Mitsubishi Logistics Corporation:
OpinionWe have audited the financial statements, which comprise the balance sheet, the statement of income, thestatement of changes in net assets and the related notes, and the supplementary schedules (“the financial
statements and the supplementary schedules”) of Mitsubishi Logistics Corporation (“the Company”) as at
March 31, 2021 and for the year from April 1, 2020 to March 31, 2021 in accordance with Article 436-21 of the Companies Act.
In our opinion, the financial statements and the supplementary schedules referred to above present fairly,
in all material respects, the financial position and the results of operations of the Company for the period,
for which the financial statements and the supplementary schedules were prepared, in accordance withaccounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Auditof the Financial Statements and the Supplementary Schedules section of our report. We are independentof the Company in accordance with the ethical requirements that are relevant to our audit of the financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Responsibilities of Management and Corporate Auditors and the Board of Corporate Auditors for
the Financial Statements and the Supplementary Schedules
Management is responsible for the preparation and fair presentation of the financial statements and the
supplementary schedules in accordance with accounting principles generally accepted in Japan, and forsuch internal control as management determines is necessary to enable the preparation of financial
statements and the supplementary schedules that are free from material misstatement, whether due tofraud or error.
In preparing the financial statements and the supplementary schedules, management is responsible forassessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern in accordance with accounting principles generally accepted in Japan and using thegoing concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Corporate auditors and the board of corporate auditors are responsible for overseeing the directors’
performance of their duties with regard to the design, implementation and maintenance of the Company’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements and the Supplementary
Schedules
Our objectives are to obtain reasonable assurance about whether the financial statements and the
supplementary schedules as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an audit conducted in accordance with auditing standards generally
accepted in Japan will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements andthe supplementary schedules.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements and the
supplementary schedules, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
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than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, while the objective of the audit is not to express an opinion
on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting andbased on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the financial statements and the supplementary schedules or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.

Evaluate whether the presentation and disclosures in the financial statements and the supplementaryschedules are in accordance with accounting standards generally accepted in Japan, the overall
presentation, structure and content of the financial statements and the supplementary schedules,
including the disclosures, and whether the financial statements and the supplementary schedules
represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with corporate auditors and the board of corporate auditors regarding, among othermatters, the planned scope and timing of the audit, significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide corporate auditors and the board of corporate auditors with a statement that we havecomplied with relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and whereapplicable, related safeguards.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
We do not have any interest in the Company which is required to be disclosed pursuant to the provisionsof the Certified Public Accountants Act of Japan.
Atsuki Kanezuka
Designated Engagement Partner
Certified Public Accountant
Taro Nakamura
Designated Engagement Partner
Certified Public Accountant
Masaya Ariyoshi
Designated Engagement Partner
Certified Public Accountant
KPMG AZSA LLC
Tokyo Office, Japan
April 30, 2021

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Board of Corporate Auditors’ Audit Report (duplicated copy)

Audit Report(English Translation)
Regarding the performance of duties by the Directors for the 218th fiscal year from April 1, 2020 to March
31, 2021, the Board of Corporate Auditors hereby submits its audit report, which has been prepared upon carefulconsideration based on the audit report prepared by each Corporate Auditor.
1. Summary of Auditing Methods by the Corporate Auditors and Board of Corporate Auditors(1) The Board of Corporate Auditors established auditing policies, audit plans and other relevant matters,
and received reports from each Corporate Auditor regarding his or her audits and results thereof, as
well as received reports from the Directors, other relevant personnel and the Accounting Auditor
regarding performance of their duties, and sought explanations as necessary.
(2) Each Corporate Auditor complied with the auditing standards of the Corporate Auditors establishedby the Board of Corporate Auditors, followed the auditing policies, audit plans and other relevant
matters, communicated with Directors, the Internal Audit Department, other employees, and any otherrelevant personnel over telephone lines, the Internet, or other means, and made efforts to prepare theenvironment for information collection and audit, as well as conducted the audit through the methods
described below.
1. We participated in meetings of the Board of Directors, the Executive Committee, and otherimportant meetings, received reports from the Directors, employees and other relevant personnel
regarding performance of their duties, sought explanations as necessary, examined important
authorized documents and associated information, and studied the operations and financial
positions at the headquarters and principal business offices. With respect to subsidiaries, wecommunicated and exchanged information with Directors and Corporate Auditors of subsidiaries
as well as received reports from subsidiaries by visiting them as necessary.
2. In addition, with respect to the system for ensuring that the performance of duties by the Directors
as stated in the Business Report conforms to the related laws and regulations and the Articles ofIncorporation, and the contents of the resolutions of the Board of Directors regarding preparationof other system to ensure the properness of operations of a group of enterprises consisting of astock company and its subsidiaries as stipulated in Article 100, Paragraphs 1 and 3, of theOrdinance for Enforcement of the Companies Act and such other system prepared based on such
resolutions (internal controls system), we received regular reports from Directors, employees andother relevant personnel regarding the development and the operation of the system, requested
explanations as needed. With respect to internal control over Financial Reporting, we received
reports from Directors and other relevant personnel as well as KPMG AZSA LLC regarding thestatus of evaluation and audit of the internal control, and requested explanations as needed.
3. We examined the details of the basic policies pursuant to Article 118, Item 3 a. of the Ordinancefor Enforcement of the Companies Act set forth in the Business Report.
4. Furthermore, we monitored and verified whether the Accounting Auditor maintained its
independence and implemented appropriate audits, as well as received reports from the
Accounting Auditor regarding the performance of its duties and sought explanations as necessary.
In addition, we received notice from the Accounting Auditor that “the system for ensuring that
duties are performed properly” (matters set forth in each item of Article 131 of the Ordinance for
Corporate Accounting) had been prepared in accordance with the Product Quality Management
Standards Regarding Audits (issued by the Business Accounting Deliberation Council on October28, 2005) and other relevant standards, and sought explanations as necessary.
Based on the above methods, we examined the Business Report and the supplementary schedules
thereof, the non-consolidated financial statements (non-consolidated balance sheet, non-consolidated
statement of income, non-consolidated statement of changes in net assets, and non-consolidated notes)
and the supplementary schedules thereof, as well as the consolidated financial statements (consolidatedbalance sheet, consolidated statement of income, consolidated statement of changes in net assets andconsolidated notes) related to the relevant fiscal year.

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2. Results of Audit(1)

Results of Audit of Business Report and Other Relevant Documents

1. In our opinion, the Business Report and the supplementary schedules are in accordance with therelated laws and regulations, and the Articles of Incorporation, and fairly represent the Company’s
condition.
2. We have found no evidence of wrongful action or material violation of related laws and regulations,nor of any violation with respect to the Articles of Incorporation, related to performance of duties by
the Directors.
3. In our opinion, the contents of the resolutions of the Board of Directors related to the internal control
systems are fair and reasonable. In addition, we have found no matters on which to remark regarding
the description in the Business Report and the performance of duties by the Directors related to suchinternal control systems, as well as internal control over Financial Reporting.
4. We have found no matters to point out with respect to the basic policies regarding the Company’scontrol as described in the Business Report.
(2)

Results of Audit of Non-consolidated Financial Statements and Supplementary Schedules
In our opinion, the methods and results employed and rendered by Accounting Auditor KPMG AZSA
LLC are fair and reasonable.

(3)

Results of Audit of Consolidated Financial Statements
In our opinion, the methods and results employed and rendered by Accounting Auditor KPMG AZSA
LLC are fair and reasonable.

May 7, 2021
Board of Corporate Auditors, Mitsubishi Logistics Corporation
Corporate Auditor(Full-time Corporate Auditor)
Corporate Auditor(Full-time Outside Corporate
Auditor)Corporate Auditor(Outside Corporate Auditor)
Corporate Auditor(Outside Corporate Auditor)
Corporate Auditor

54

Tohru Watanabe
Mikine Hasegawa
Yohnosuke Yamada
Takao Sato
Junya Miura